1. The New Institutional Net Price Calculator Requirement in HEOA Elise S. Miller National Center for Education Statistics U.S. Department of Education

2. Agenda Background U.S. Department of Education’s Net Price Calculator Template –Screen Walkthrough Next Steps for Institutions Resources

3. Background Higher Education Opportunity Act (HEOA) –Signed into law on August 14, 2008 –Includes many new disclosure requirements = your institution must disclose information to the public in some manner (e.g., on its website, in its promotional materials) –Requires that institutions have a net price calculator on their websites for full-time, first- time degree/certificate-seeking undergraduate students

4. Background Requirement All institutions must have a net price calculator posted on their websites by October 29, 2011 An institution may either use the Department’s Net Price Calculator template or it may develop its own Note: Institutionally developed calculators must include “at a minimum the same data elements” found in the Department’s Net Price Calculator template

5. Background Purpose –“to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. The calculator shall be developed in a manner that enables current and prospective students, families, and consumers to determine an estimate of a current or prospective student’s individual net price at a particular institution.” - P.L. 110-315, sec. 132 (h) (1).

6. Background HEOA Definition of Net Price Institution’s price of attendance for FTFT* students Total need- and merit-based federal, state, and institutional grant aid awarded to FTFT* students Number of FTFT* students receiving such aid Price of attendance = average annual cost of tuition and fees, room and board, books, supplies, and transportation Price of attendance = average annual cost of tuition and fees, room and board, books, supplies, and transportation *at a minimum -- you can also provide net price for other types of students: part-time; graduate students; etc.

7. Net Price Calculator Template Process –A Technical Review Panel (TRP) meeting was held in January 2009 Keep template simple and usable for all Title IV institutions Recognize that institutions have an interest in customizing their calculators

8. Net Price Calculator Template How It Works Institutional Data Maintenance Application www.institution.edu/.... User Application

9. Net Price Calculator Template How It Works –Institutions input the following data: Price of attendance Median amounts of grant and scholarship aid awarded to, and accepted by, first-time, full-time degree/certificate-seeking students by EFC range –Users are asked nine questions to establish the following: Their dependency status Their estimated cost of attendance Approximated EFC

10. Net Price Calculator Template How It Works –The template uses a look-up table populated with data from the FAFSA applications database to identify a median EFC from a previous year’s data –Median EFC is matched with the median grant and scholarship aid amount entered by the institution for the corresponding EFC range and data year to determine the student's estimated amount of total grant aid –Estimated net price is calculated by subtracting estimated total grant aid from the estimated total cost of attendance

11. Net Price Calculator Template Screen Walkthrough http://nces.ed.gov/ipeds/resource

12. Institution Application Net Price Calculator Template

13. Step 1: Determine year and calendar system

14. Step 2: Set up data screens

15. Step 3, Table 1: Enter price data

16. Step 3, Table 2: Enter grant and scholarship data

17. Step 4: Enter explanations and caveats Template explanation

18. Step 4: Enter explanations and caveats, continued Step 4: Enter explanations and caveats, continued

19. Step 5: Review information entered

20. Net Price Calculator Template Step 6: Download and extract files

21. Net Price Calculator Template The End User’s Experience

22. Screen 1: User answers basic questions Net Price Calculator Template If student answers, no, sent to output screen and shows net price for non- FAFSA filers If student answers >23, then considered independent. Determines which cost of attendance to use to calculate net price.

23. Screen 2: User answers questions Net Price Calculator Template If married, assumer independent. If have dependent children, assume independent. Else, assumes dependent Dependency status the used as one characteristic in EFC “look up” table

24. Screen 3: User answer questions Each used as characteristics in median EFC “look up” table

25. Screen 4: User reviews information entered

26. 26 Behind the scenes: Application “looks up” median EFC (from ED data built into template) and cost of attendance (from institution- entered data).

27. Output: Produce net price output Explanations and caveats Estimated net price

28. Next Steps for ED Template Bulk/batch data upload option -- Coming Soon! –State/system can use to create individual calculators for multiple campuses –Institutions could use to create multiple calculators for multiple programs

29. Next Steps for ED Template Focus Groups Recently held two focus groups: –(1) students & parents on user app, and –(2) institutional reps on input app When we release next version of calculator with updated EFC tables, we may also tweak based on focus group findings. The minimum data elements and HEOA definitions will not change.

30. Minimum Required Elements Input elements must include: –Data elements to approximate the student’s Estimated Family Contribution (EFC), such as income, number in family, and dependency status or factors that estimate dependency status An institution may use either Federal Methodology or Institutional Methodology to approximate the student’s EFC.

31. Minimum Required Elements Output elements must include: –Estimated total price of attendance; –Estimated tuition and fees; –Estimated room and board; –Estimated books and supplies; –Estimated other expenses (personal expenses, transportation, etc.); –Estimated total grant aid; –Estimated net price; –Percent of the cohort (full-time, first-time students) that received grant aid; and –Caveats and disclaimers, as indicated in the HEOA.

32. Decision for Institutions Which approach should your institution use? –Use the Department’s template –Develop your own* Update an existing calculator (e.g., financial aid calculator) Use a third-party calculator (state, vendor) –Note: Department has not endorsed or approved any calculators Create a calculator in-house –Table-based approach –More complex model of award algorithm *Must contain, at minimum, the same elements as the Department’s template

33. Decision for Institutions Where will the calculator “live” on your institution’s website? –Will it be on homepage, admissions, financial aid, consumer info site? –The NPC is one of several institutional disclosure requirements –Coordinate with other units on your campus –Institutions to report their net price calculator URLs in IPEDS

34. Resources http://nces.ed.gov/ipeds/resource/net_price_ calculator.asphttp://nces.ed.gov/ipeds/resource/net_price_ calculator.asp –Template –U.S. Department of Education Net Price Calculator Template –Related Files –Expected Family Contribution (EFC) Tables –Template Source Code –Readme File –Glossary –Quick Start Guide

35. Resources –List of Minimum Required Elements –Frequently Asked Questions about the Department’s Net Price Calculator Template (specific to how the ED template works) –Frequently Asked Questions about the Net Price Calculator Requirement (policy, compliance) –AIR Net Price Calculator Resource Center

36. 36 Contact Information We appreciate your feedback and comments. We can be reached at: Elise Miller (Template) Email: Elise.Miller@ed.govElise.Miller@ed.gov Jessica Finkel (Requirement) Email: Jessica.Finkel@ed.govJessica.Finkel@ed.gov