A Majority of Students Look at a College’s Sticker Price without Taking Financial Aid into Consideration

A new report from the College Board and Art and Science Group indicates that 54 percent of students consider the cost of  college based on the sticker price alone, without considering the possibility of financial aid.  The report’s findings suggest that institutions of higher education need to continue to find better ways of communicating to families the cost of attending college and financial aid information in simple, understandable, and accessible ways.

Among the report’s findings:

• Three quarters of the high school students surveyed had discussed college cost and affordability with their families but over half of these students considered the total cost of a specific college without factoring in financial aid.
• While almost all students intended to apply for financial aid (90%), a high proportion expected to receive aid based on academic, athletic, or other achievements, with more students expecting to receive aid based on academics than based on family income or need.
  • 72% believed they would receive financial aid based on academics, 62% thought they would receive aid based on family income, 11% based on their athletic accomplishments, and 39% based on other achievements.
• The use of net price calculators (online tools to give students and families an estimate of the price of college factoring in financial aid) has increased in the past year.
  • However, only 16% of students from the lowest income families reported using such tools.
  • Additionally, students expressed reservations about the tools’ accuracy in predicting what their families will be expected to pay.
  • Other sources of information, including college websites, brochures, and financial aid workshops were reported as more widely used than net price calculators, particularly among low and middle-income students.
• Students indicated high expectations for financial aid covering their college costs.
  • On average, students expected financial aid not including loans to cover just over half of their costs.
  • Low-income students expected financial aid not including loans to cover 67% of costs.
  • In general, low-income students expect financial aid to cover a greater percentage of their total college costs than middle and high-income students.
• Given that students reported concerns with getting a job upon graduation, 75% of survey respondents indicated they plan to major in a field that will prepare them for a career or graduate school or provide them with job skills and experience.