HELPING STUDENTS UNDERSTAND THE NET COST OF COLLEGE AND HOW TO PAY FOR IT. Created by Carolyn Lee

“Let us think of education as the means of developing our greatest abilities, because in each of us there is a private hope and dream which, fulfilled, can be translated into benefits for everyone and greater strength for our nation.” President John F. Kennedy, July 25, 1961

The situation today  “The current system encourages students to apply to college without knowing with any certainty if they can even afford it.” -The Student Aid Gauntlet U.S. Department of Education, 2006  95% of high school counselors and college financial aid and admissions officers when surveyed, indicated that having access to a side-by-side net cost comparison of the colleges that a student was interested in would improve a student’s ability to select the right college. Solutions to Expand College Access, David Childress University of Texas Graduate Research, 2008

✚ Until college aid award letters arrive in April, there is little way for students and families to evaluate affordability, because they don’t understand their student aid eligibility. ✚ Many students who want to attend college don’t even apply because they don’t believe they can afford to go. ✚ Other students let their perceptions about the published cost of attendance guide their decision making and limit the colleges they consider. ✚ After college, many students and parents are very deep in debt – often for decades – because affordability wasn’t sufficiently factored into their decisions. Let’s face it: Today, students are forced to apply to colleges without understanding their out-of-pocket costs

2011 Update ✚ By Oct. 29, 2011, colleges and universities were required to have a net price calculator on their websites as part of The Higher Education Opportunity Act of ✚ Parents and students can enter tax and income information and find out the true price tag of a school. ✚ The calculator is intended to give them an idea of a possible financial aid package and the cost of a school after fees and living expenses are added.

But, it is an enormous financial investment for most students and their families. Going to college is unquestionably important.

The average published cost of tuition, fees, room and board for:  An IN-STATE resident completing a degree at a four-year PUBLIC college is now $57,332 (assuming a student graduates in 4 years).  More expensive than buying a car.  any student completing a degree at a four- year PRIVATE college is now $136,528 (again assuming 4 years of enrollment).  More expensive than buying a house.

What that price doesn’t include  Unfortunately, these costs do not include books, supplies, transportation and other expenses but importantly, they exclude student aid in the form of grants and scholarships. * College Board, Trends in College Pricing 2008  A college’s published cost of attendance does not represent the amount that a student or family must pay out-of-pocket because that figure fails to take into account student aid.

Yet, the cost of going to college – even the same college – can be different for each student.  The published cost of attendance  Tuition and fees  Room and board  Books and supplies  Miscellaneous expenses  (minus) Grants and Scholarships  These do not have to be repaid  = Your net cost of college

Can be funded using: -personal savings -student and parent loans -work-study employment All of which you will learn more about during today’s presentations. Your net cost of college

This assignment will be due on Friday, December 9 at the beginning of class. With that information in mind, what should you do next?

or a table in office, that contains all of the categories on the following slide. You will need to fill in the information for each college you have or will be applying to. 1) Create an excel spreadsheet,

The necessary categories  -Average number of years it takes for students to graduate

Where to find the cost information:  Go to:  Click “College Search”  Once you find the name of your school select “More Information”  Find the “Facts & Figures” tab and select that  Under the graduation rates keep in mind that they are stating “WITHIN” a certain number of years  Example: 4 years – 46% 5 years – 56% 6 years – 60%  Therefore: 4 year – 46% 5 years – 10% 6 years – 3%

The necessary categories…continued -Cost of tuition per year of attendance (for in-state or out-of-state as appropriate to your situation) -Average cost of room and board -Average cost of books and supplies -Average additional expenses they mention -Create a total for the amount of the categories listed above (Gross cost of college)

Where to find the cost information:  Go to:  Under the “Colleges” tab –select “College Lookup”  Once you have found your school look at the “Financial Aid” tab

The necessary categories…continued -Below your total cost for each school, include the following categories: -Average percent of students receiving a scholarship -Average $ amount of scholarship

Where to find this information:  This information can be found in the same area  Keep in mind that you are looking for merit & need- based aid  “Self-Help aid” is reference

The necessary categories…continued -Include these categories below that section, but you will NOT fill them in until you receive your financial aid package from each college (sometime in the spring) -Total grant/scholarship offered to you -Net cost of attending the college taking into account any scholarships or grants you have received

This is just a sample chart. Do NOT use the figures and assume they’re still accurat e. Each UC & CSU will have different costs past tutition.

Purpose for this assignment This assignment should help you gain a better understanding of the total amount of money you would be spending to attend each of the colleges you are interested in. Looking over your spreadsheet should help you and your family make an informed decision as to which colleges are affordable based on your individual situation. Share this information/assignment with your parents.

For the second part of this assignment you need to find out how much money you will be wasting each time you ditch, sleep through, or miss your class for some other reason. In college, unlike high school, there is always a monetary unit tied to your learning. 2) The cost of missing a class

Directions—Semester Schedule Step 1– Find out the total cost per semester at one of the colleges you are applying to (Total cost for the year divided by 2.) Step 2- Assume you are taking a 15 unit course load with each course being 3 units. Divide the semester cost by 5 to get the cost/course. Step 3– Assume your course meets 3 times a week, for an hour each class period, for a total number of 15 weeks (this is a semester schedule). That means that your class meets for a total number of 45-one hour sessions. Step 4- Divide the total $ amount in Step 2 by 45. This figure will let you know how much money you have wasted each time you are not in a one hour session of your course. Keep this in mind once you are in college. Step 5– Repeat this process for each school you are applying to.

Semester Example Step 1 – Cost of College $40,000 ÷2 semesters = $20,000 per semester Step 2 – $20,000 ÷ 5 courses = $4,000 per course Step 3 – $4,000 ÷ 45 class sessions = $89 per single hour of class missed at this university!

Directions—Quarter Schedule Step 1– Find out the total cost per quarter at one of the colleges you are applying to (Total cost for the year divided by 3.) Step 2- Assume you are taking a 12 unit course load with each course being 3 units. Divide the semester cost by 4 to get the cost/course. Step 3– Assume your course meets 3 times a week, for an hour each class period, for a total number of 10 weeks (this is a quarter schedule). That means that your class meets for a total number of 30-one hour sessions. Step 4- Divide the total $ amount in Step 2 by 30. This figure will let you know how much money you have wasted each time you are not in a one hour session of your course. Keep this in mind once you are in college. Step 5– Repeat this process for each school you are applying to.

Quarter Example Step 1 – Cost of College $40,000 ÷3 semesters = $13,334 per quarter Step 2 – $13,334 ÷ 4 courses = $3,334 per course Step 3 – $3,334 ÷ 30 class sessions = $111per single hour of class missed at this university!

by the beginning of the period on Friday, December 9. We will discuss what you have learned at that point. You may add a row for Part 2 at the bottom of your chart from Part I to include this information. Both part 1 and 2 must be turned in