Calculating College Costs

Alaska holds the record for the fewest number of higher education institutions in the United States, while California has the most. The number of colleges within a state may impact student selection, as do the degree programs offered, extracurricular activities available, and school accreditation status. For many students, cost will be major factor in selecting a college. Making sure college is a good fit financially is imperative to ensure a good college experience and to avoid the long-term effects of rising tuition costs. Because the cost to attend college differs between institutions, it is equally important to understand how to calculate college costs during the college selection process.

Cost of Attendance (COA)

The COA includes both direct and indirect college costs. The direct costs include not only tuition and fees, but also housing and meal plans. Tuition differs among institutions as some charge a set tuition rate and others charge by credit hour. Fees are dependent on the labs or technologies that are applicable to specific programs as well as specific colleges. Housing costs are dependent on the housing option chosen for those students that choose to live on campus. Some colleges offer meal credits while others charge per item purchased. As a result, the direct costs of a college will differ from student to student based on the varying degree of options available for a particular school.

Indirect college costs encompass those educational costs that are not paid directly to the college. These costs can include furnishings for a dorm, transportation, required textbooks for courses in a college program, and personal expenses. A best estimate of what the indirect costs may be should be factored into the overall COA to determine if a college fits your budget.

Student Aid Index (SAI)

The SAI replaces the former Expected Family Contribution. This number is calculated using the financial and family information input on the Free Application for Federal Student Aid (FAFSA). This includes student and parent income, assets, tax information, and other demographic information. The Federal government uses this information to determine eligibility for Pell Grants and lowest-cost loans. The lower the SAI, the more likely need-based aid will be granted to an applicant. Students with a high SAI are less likely to qualify for need-based aid. However, these students may be eligible for merit aid or institutional scholarships.

Net Price Calculator (NPC)

For colleges that participate in Federal Student Aid programs, the NPC is required to be provided to students and their families. The NPC can be located on each college’s financial aid website. The NPC calculates the out-of-pocket costs that students and their parents need to pay. To compare the NPC for multiple schools, students can create a College Board account and save the information entered; this allows the student to return without having to re-enter personal and financial information. Because the net price is typically lower than the published price, this estimate will enable a student to see what it really costs to attend a particular college.

Although going to college is a large investment for students, the personal advantages of attending college often outweigh the cost of getting a degree. Research has shown that persons with college degrees enjoy better health and quality of life than others. In addition, college students develop skills that can be used not only in jobs but also in other capacities. Therefore, college bound students should leverage financial aid and seek affordable college programs to help ensure the cost to attend college is manageable.