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MAKING CENTS OF COLLEGE COSTS, FINANCIAL AID, AND NET PRICE
College Board Forum – Miami, FL
October 26, 2012
Diane Cheng, The Institute for College Access & Success (TICAS)
Youlonda Copeland-Morgan, UCLA
Hamilton Freeman, Bartlett Yancey High School
Roadmap
Overview of the tools available to help students and families understand financial aid
TICAS research and recommendations
The college perspective
The student and counselor perspective
Discussion and Q&A
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Overview of Tools
Early awareness of college affordability:
Net price calculators Average net price on College Navigator website and
the proposed White House College Scorecard
Understanding the financial aid package:
Award letters Financial Aid Shopping Sheet
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Online tools that provide students with early, individualized estimates of college costs & financial aid
Required on almost all college websites since Oct. 29, 2011
Net price = full cost of attendance minus grants and scholarships = amount students and families have to earn, save, or borrow The timing is key – students and their families can use NPCs before
deciding where to apply
The majority of students in a recent survey ruled out colleges based on sticker price alone*
*The College Board and Art & Science Group, LLC. 2012. http://www.artsci.com/studentpoll/v9n1/index.html
Early Awareness of Affordability:
Net Price Calculators (NPCs)
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To best serve the needs of students and families, NPCs must be:
1. Easy to find 2. Easy to use 3. Easy to understand and compare
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Early Awareness of Affordability:
Net Price Calculators (NPCs)
TICAS Research on NPCs
“Adding It All Up: An Early Look at Net Price Calculators” – March 2011 Early look at 16 colleges that had already posted calculators by January
2011 (before deadline).
“Adding It All Up 2012: Are College Net Price Calculators Easy to Find, Use, and Compare?” - October 2012 In-depth look at NPCs from 50 randomly selected colleges.
Nearly a year after the deadline, NPCs are still not reliably easy for students and families to find, use, and compare.
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Are NPCs Easy to Find?
Colleges should post their NPCs prominently in areas of their websites where prospective students and their families are likely to look.
Nearly ¼ of colleges did not post their NPCs on their website’s financial aid or costs page.
Even when the link was on a relevant page, it was rarely posted prominently.
Five calculators weren’t even called “net price calculators.”
Students shouldn’t have to resort to using a search engine to find a college’s net price calculator.
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NPC Link Prominently Posted on Financial Aid Page
http://www.grinnell.edu/offices/financialaid - 8 -
NPC Hard to Find on Fin Aid Page
http://www.admission.gatech.edu/apply/costs-aid-scholarships-2
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NPC is a link on this
consumer information
http://www.lincolncollegene.edu/download/consumer/LCNE_Gnrl-Institutional-Info-Disclosure.pdf - 10 -
NPC Hard to Find
NPC Links on College Navigator (ED)
http://nces.ed.gov/collegenavigator/?q=college+of+southern+nevada&s=all&id=182005#general
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http://collegecost.ed.gov/netpricecenter.aspx
NPC Links on Net Price Calculator Center (ED)
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Are NPCs Easy to Find?
Colleges should report direct links to their NPCs to the Department of Education.
Almost one-third of colleges reported links that would not actually help students and families find their NPCs.
Where does the reported link point to? # % of total Goes directly to NPC 25 50% Goes to page with NPC link 9 18% Goes to page without NPC link 13 26% Broken link 3 6% TOTAL 50 100%
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Number of questions ranged from 8 to about 70.
Many NPCs asked for detailed information that students and families may not have on hand.
More than one-third asked for information that students wouldn’t be able to provide without digging up detailed financial records.
Four NPCs asked users to directly input their EFCs and one required that students go to an separate EFC calculator on another website.
12 NPCs asked about academic qualifications and some even required SAT or ACT scores.
Are NPCs Easy to Use?
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Calculators asking dozens of detailed questions can be daunting – particularly for students who could benefit most from early estimates of financial aid.
Colleges should make their NPCs accessible to all types of students.
Colleges can balance precision with ease of use by limiting the number of required questions and making it clear which questions are required.
Only four NPCs that asked for detailed financial information marked any of those questions optional.
Three NPCs allowed students to bypass detailed financial questions by entering estimates instead.
Are NPCs Easy to Use?
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If asking for contact information, colleges should make it clear that submitting that information is not required.
14 NPCs in our sample asked for contact information.
Four did not make it clear that submitting contact info is
optional.
Are NPCs Easy to Use?
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Academic Year of NPC Estimates
Are NPCs Easy to Understand and Compare?
# % of total 2008-09 1 2% 2009-10 18 38% 2010-11 10 21% 2011-12 10 21% 2012-13 3 6% Not indicated 5 11% TOTAL 47 99% - 18 -
NPCs should not be more than two years behind the current academic year.
Example of a Clear NPC Result 2010-11 Federal Template
• All the required components are clearly broken out (COA, grant aid, net price)
• Year is clearly indicated
• Net price is the most prominent figure on the page
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Colleges estimating self-help in the form of student work or loans should (but not all do): Clearly differentiate self-help from grants and scholarships Limit borrowing estimates to federal student loans
Net price should be the most prominent figure on the page. Nearly all of the NPCs in our sample subtracting self-help from
estimated costs made that lower figure (sometimes called “estimated out-of-pocket cost”) equal to or more prominent than the net price.
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Are NPCs Easy to Understand and Compare?
Net Price is the Most Prominent Figure on the Page
University of Tulsa, https://utulsa.studentaidcalculator.com/survey.aspx - 21 -
Net Price Buried at Bottom of
Page
CollegeAmerica-Phoenix, http://www.collegeamerica.edu/net-price-calculator - 22 -
http://nces.ed.gov/collegenavigator/?q=university+of+chicago&s=all&id=144050
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Early Awareness of Affordability:
College Navigator Website
Average Net Price Data
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Early Awareness of Affordability:
Proposed College Scorecard
http://www.whitehouse.gov/issues/education/higher-education/college-score-card
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Overlap between what makes an effective award letter and net price calculator
Award letters are different from NPCs in: Timing Early estimates vs. final awards Format
Interpreting award letters is the #1 issue of
school counselors! (NACAC)
Understanding the Financial Aid Package
Financial Aid Award Letters
1. Award letters should prominently display: • Full cost of attendance • Total grant aid • Net price (COA – grants)
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Some award letters do not provide the full cost of attendance.
Financial Aid Award Letters: Principles for effective communication
2. Award letters should group aid by type • Gift aid: Grants and scholarships • Self-help: Work-study and loans
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Some award letters do not separate gift aid from loans and work.
Financial Aid Award Letters: Principles for effective communication
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3. Consumer-friendly, jargon-free (not like the example below)
4. Explain deadlines and steps to receive aid, provide contact information for the financial aid office
Financial Aid Award Letters: Principles for effective communication
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Understanding the Financial Aid Package
Financial Aid Shopping Sheet
• Voluntary model format for financial aid award letters
• Standardizes display of elements to help students understand and compare financial aid packages from different colleges
• Developed by the U.S. Department of Education and Consumer Financial Protection Bureau
• Adopted by 316 colleges, representing about 10% of all undergraduates (as of September 2012)
http://www.ed.gov/news/press-releases/more-19-million-college-students-receive-financial-aid-shopping-sheet-providing-
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Financial Aid Shopping Sheet: Makes awards easier to compare
http://collegecost.ed.gov/shopping_sheet.pdf
Full cost of attendance
Easy to compare net price
Separates gift aid
(Excerpt)
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Financial Aid Shopping Sheet: Makes awards easier to compare
http://collegecost.ed.gov/shopping_sheet.pdf
Presents self-help separately from gift aid
No numerical figures for private or PLUS loans
(Excerpt)
At UCLA, we think broader than the horizon.
The College Perspective
Youlonda Copeland-Morgan Associate Vice Chancellor, Enrollment Management, UCLA
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The College Perspective
The New Normal Tuition, fees and other college costs are RISING Median family incomes have declined Rapidly changing college demographics Weakened federal, state and institutional
partnership Need-based financial aid is shrinking in lieu of
merit aid Increase competitiveness among colleges and
universities Financial aid is a complex issue
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The College Perspective
Despite efforts to simplify financial aid, families don’t understand the process
Increasing numbers of students are first-generation or from low SES backgrounds
More middle-income families are struggling to pay college costs
Institutions and governments must operate differently in the new normal
Effort -- Grades vary across type, size and institutional resources
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The College Perspective
Initially, NPC was met with resistance despite admirable goals Over-regulations Disagreements over the definition of “net-price” Too much focus on cost, not “fit” Concerned about over-simplification of financial aid
awarding process and public accountability Uncertainty over future aid policies Practicability - Lack of institutional resources
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The College Perspective
Today colleges have moved from fear to compliance Many excellent examples of good calculators Initial concerns are still real issues Students are using the calculators but is it a dead
end? Are students being better served?
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Syracuse University – large 4-year private institution University of California, Los Angeles – large 4-year public institution
A Tale of Two Institutions
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SU… An Early Leader! Implications were greater than the Office of
Financial Aid…
NPC was about our institutional MISSION! Convened a Cabinet-level meeting
Vice President and Associate Vice President for Enrollment
Chancellor, Provost, Deans of Colleges CIO, CFO, Chief Marketing and Communications
Officer Student representatives
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SU… An Early Leader! What are our overarching goals?
Keep calculator simple and straightforward Reflect our current awarding policies as accurately
as possible Chancellor Cantor’s Challenge - Tell the Syracuse
University story – Unique history of providing access Ensure that first-generations students Understood “net price” and, Were not discouraged by the “net price”
There were options!
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SU… An Early Leader! Many issues to consider…. Equity packaging versus differential packaging – Not a
once size fits all approach Merit scholarships driven by academic achievement, talent,
leadership and institutional mission –not numbers (GPA and test scores)
How do you communicate financial aid awards to designed to promote access and affordability to special populations ? Some schools reduce loans for Pell recipients Other schools give greater support to students from the local
communities through community-based partnerships Alumni Scholarships
Striking a balance is sometimes difficult!
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Merit scholarships- How do you explain it given the complexity of the selection process?
NPC functionality could not provide qualitative and quantitative analysis used to determine merit eligibility –Simplicity vs. Complexity
Did not want the student NPC experience to be overly burdensome
Could NPC generate reasonably reliable outcomes?
“Garage in”, “Garbage out” but what would students remember?
Will students see the “net price” and give up? - 41 -
Average Grant?
Recognize programs such as HEOP, Say Yes, Haudenosaunee Promise, etc.
Keep the integrity of ‘meet 100% need’ packaging policies Little grant aid, little problem Simple grant aid, simple problem Big grant aid, bigger problem Diverse grant programs, multiple challenges
Full disclosure vs. Simplicity
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What Cost of Attendance should we use? How should we talk about other costs?
Tuition costs the same across programs, but program fees vary (per semester) Architecture: $300 VPA: up to $800 Newhouse: up to $350
SU has a variety of room and board options at differing
costs (per semester) Suite: $4,225 19 meals: $3,230 Large split double: $3,550 14 meals: $3,010 Skytop Apartment: $4,220 10 meals: $2,595
Use the average cost we post on our website, with added
information
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What key messages do we want to communicate in our “free” space?
What are the elements of the Syracuse University story? Scholarship in Action Meet full need policies Opportunities available to students on campus
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UCLA --The Bruin Story!
Simpler story to tell Blue and Gold Plan – Covers tuition for families
with income less than $80K Outside Scholarships often reduce “Net Price” Mission Focused - 34% Pell eligible students
Concerned about discouraging first generation students Will they even call for counseling? Will they be discouraged by taking out even the
smallest of loans and working? - 45 -
UCLA --The Bruin Story!
Tuition and fees often determined late State Grant policies are important to outcomes Part of a larger system – Needed continuity in
message across 9 undergraduate campuses UC system has a strong commitment to transfer
students who are not covered by NPC Concerned that absence of information would signal
lack of commitment Similar student characteristics and family concerns.
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Continuing Concerns
“Fit” vs. cost? – Are students making the right decisions?
Students are using the calculator but are they leaving with the right information?
Confusion lingers – Many schools are still limited by resources and vendor capabilities
Context matters - Are students and parents going straight to the calculators?
Are they getting less counseling than before?
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Recommendations to Colleges
Create opportunities to link NPC to your institutional mission Involve senior leadership Keep it simple Use hyperlinks to tell your story Prominently display your calculator on your website
Add links to admission and financial aid webpages Avoid use of acronyms Use campus pictures to create a friendlier looking website
Involve students and parents Consult legal counsel for disclosures Utilize IT and Marketing teams to help provide solutions Track usage
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The Student/Counselor Perspective
Hamilton Freeman Professional School Counselor Bartlett Yancey High School Yanceyville, NC
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Bartlett Yancey High School
Caswell County, NC Rural Primary industry was
farming Only high school 836 students in grades
9-12 35% attend four-year,
45% attend two-year Many 1st generation
college students
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Piedmont Community College/ TRIO
Junior and Senior Parent Night ◦ Spring of junior year ◦ August/September of senior year
Financial Aid Night ◦ January of senior year ◦ Representative from College Foundation of North Carolina
(CFNC.org)
Individual Counseling ◦ Conferences with parents and students
How do we talk to students and parents about financial aid?
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Based on last year’s feedback: Many students did not use these because of lack of
knowledge of the tool or lack of finding it on the website
NPCs used in the senior year
Results were used to decide between colleges once accepted
Net Price Calculators (NPC)
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Most of my students are first generation college students…
Information from students/parents: Worried about financial and contact information being
protected Hard to find on college’s websites - not in the same
location for every school Many used the College Board calculator Must have parents tax information to input Confusing financial aid language Many did not finish the process because it was too long
Students’ Experiences with NPCs
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Centralized location for the NPC on each college’s website
Limited questions with ability to be more detailed More awareness of the tool for underclassmen to
use, not just in senior year Using to decide on college to apply to versus where
to attend Literature sent to students about the NPC by email
after PSAT or PLAN
Recommendations for NPCs
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Many students are confused and bring these into our office
Misunderstandings when trying to use the tools to accept or deny awards online
Differences in Financial Aid language and terms Letters from each college are different
Students’ Experience with Award Letters
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Standardized letter/ format Standardized language
Terms defined
Many colleges/universities have a process or online presentation for first time students who get Financial Aid
Give families the information about possible comparison tools available, including the Financial Aid Shopping Sheet
Recommendations for Award Letters
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Parent/student workshops throughout the year and for a variety of grades Inform families using the internet, websites, newspapers and
alerts by phone
Involve community resources State Employees Credit Union and area banks have
financial events If you have mentor programs, involve them in college visits
and getting to the financial aid office
Financial Aid Internships CFNC offers a paid internship with Financial Aid offices in
NC
Best Practices for Counselors
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Involve local colleges/universities TRIO program has an employee that comes every Thursday
in the spring semester to help file FAFSA
Practice with the NPCs and samples of Award Letters The more you experience these tools, the more helpful you
will be with students and parents. You can practice with institutions that many of your students
are interested in and call your contacts in Financial Aid if you have questions.
For Parent Nights, have a case study or examples you can use to illustrate common results Being able to show examples make things user-friendly
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Best Practices for Counselors (ctnd)
Advise students to focus on a variety of institutions Private, public, technical, community and four-year colleges
Respect emotions that may occur
Personal questions Unexpected results
The follow-up conversation should always include
more resources Scholarship list, Agency contacts such as TRIO, which
includes outreach and student services programs and Vocational Rehabilitation (VR)
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Best Practices for Counselors (ctnd)
TICAS’ NPC Publications and Resources page: http://ticas.org/NPC_resources.vp.html
Department of Education’s NPC Information Center (for colleges): http://nces.ed.gov/ipeds/resource/net_price_calculator.asp
Department of Education’s NPC Center (for students): http://collegecost.ed.gov/netpricecenter.aspx
Information about Financial Aid Shopping Sheet: http://www.ed.gov/news/press-releases/more-19-million-college-students-receive-financial-aid-shopping-sheet-providing-
Additional Resources
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