Formula and tools to calculate college costs. Photo by Wendy David-Gaines
How much will college cost you, exactly? There’s a big range between the most expensive private colleges (over $65,000) and the least expensive public universities (under $10,000) or community colleges (some states’ free tuition proposals). There are plenty of hidden costs that families should know to prevent nasty financial surprises. Because of need-based and merit financial aid awarded to admitted students, college sticker price is rarely what the college bill will be. Fortunately, there are tools to help families estimate costs.
Predicting total college costs depend on what expenses are included. The government and colleges have agreed on this formula for Cost of Attendance (COA):
COA = tuition and fees, room and board, books and supplies, transportation and personal expenses
Unfortunately, COA doesn’t tell the whole story. There are hidden costs so I came up with this more realistic accounting:
POCS COA = COA + start-up costs + program expenses + parent travel expenses + borrowing costs
POCS COA includes start-up costs like setting up a dorm room, program expenses for those with more costly textbooks and/or special equipment, parent costs because their costs such as for meals, lodging, gas, plane tickets are never considered and neither are student and parent borrowing costs including interest and fees. Check my website for more details.
Business Insider recently featured 8 Tools To Help Estimate What College Will Cost. It’s always wise to check the source sites first. To calculate federal aid that flows from the FAFSA (Free Application for Federal Student Aid), use FAFSA4caster for eligibility and Expected Family Contribution (EFC) to college costs. Try the federal College Scorecard for information colleges must report like loan default rates and links to a college’s own website for its Net Price Calculator (NPC). The NPC roughly estimates the difference between sticker price less grants and scholarships for which students may be eligible to receive. Since free money from a college’s own funds may also be given to entice students to attend and who a college wants most depends on the entire applicant pool for that year, it is hard to be accurate. The NPC institutions report can also be found via the federal College Affordability and Transparency lists along with how costs are changing from year to year.
Those planning on taking out federal student loans to help pay for college can use the federal Repayment Estimator to estimate the loan payments under various repayment plans. It’s important info to help students plan for an affordable lifestyle after graduation.
Read Suzanne’s post: Talking to Your Kids About Financing College
Wednesday’s child may be full of woe but Wednesday’s Parent can substitute action for anxiety. Each Wednesday Suzanne Shaffer and I will provide parent tips to get and keep your student on the college track. It’s never too late or too early to start!
Suzanne and I host Twitter chat #CampusChat at 9pm ET/6pm PT on the fourth Wednesday of each month. Except this month, we are hosting an open mic night on Wednesday, December 17. Bring your questions and comments about college prep over the holidays!
Wednesday’s Parent will give twice the info and double the blog posts on critical parenting issues by clicking on the link at the end of the article from www.pocsmom.com to http://www.parentscountdowntocollegecoach.com/ and vice versa.