How to determine what colleges might think of your family's financial resources, your ability to pay? Thanks to an initiative by the Obama Administration in 2011, a "Net Price Calculator" appears on the website of virtually every accredited college and university. Yep, most institutions have one. It takes a lot of the guesswork out of finding the best-fit college at the best financial terms.
The calculator will estimate how much a student/family is expected to pay the institution 'out of their own pocket' (in admissions parlance, this is the "EFC" or "expected family contribution.") You may be dismayed by the EFC number the calculator gives you -- the pandemic has hit the bank accounts of so many. Indeed, you may wonder if that is what you'll pony up no matter where you apply.
In another post, I'll discuss "merit aid," a tool hundreds of colleges [1] use to gain an advantage in the competition for students. Merit aid is thrown into the mix to give students who have the ability to pay a softer landing -- financially speaking -- at their campus. It's financial aid beyond determined need. Indicators that admissions committees rely on to assess whether a student is a good match for their institution -- "grades, test scores and extracurricular activities" -- are also the criteria by which merit aid is awarded; it's part and parcel. [2]
A US News article from 2019 makes a terrific point about the EFC number: "A common misconception about expected family contribution, or EFC, is that it equals the amount a family will pay for college. EFC is the measure of a family's financial strength generated by the information provided on the FAFSA, the U.S. Department of Education form used to distribute federal financial aid. Many don't realize it is an estimate, and the amount a family will actually pay can be significantly below or above this number."
That's why you should cast a wide net and look beyond your state's college system and even your state's borders for the best possible deal. But the search can seem aimless without a number to anchor you. That's why it's essential to visit a net price calculator for an educated guesstimate, a sum you can refer to as you look at all the possibilities in higher education.
[1] Institutions awarding financial aid based on need only (NO merit aid) include Haverford Reed, Wellesley and the Ivy League. These are often venerable institutions with healthy endowments that can meet full demonstrated need. What happens when a college does NOT meet your demonstrated need? Well, that's called "gapping."
[2] How will colleges determine what a student has to offer with the pandemic affecting typical high school life? More here.