Finance Authority of Maine
FAME's 5 on the 5th
November 2011

 

5 Things You Need to Know About Net Price Calculator (NPC)
  
 
Have you heard the term Net Price Calculator and wondered what it was?  NPC is new and will be very helpful to students, families and those assisting them with the college search process.  Below is some basic information regarding NPC and we recommend that you visit some school web sites and try out NPC for yourself!

 

 

1.  What is Net Price Calculator?

 

Net Price Calculator (NPC) is a calculator tool that provides an individual student with an estimate of the "net price" to attend that specific school. Here is how it works:

 

  • First, the calculator estimates the cost to attend a particular school based on student characteristics and information provided by the school. 
  • Next, the calculator allows the student to enter financial information to determine the amount of money the family might be expected to contribute toward college.
  • Lastly, the calculator provides an estimated amount of grants and scholarships the student is eligible to receive at the school and based on that, a "net price" is calculated.

 

 

2.  How is Net Price Defined?

 

Net price is average yearly price to attend a school (tuition, fees, room, board, books, supplies, transportation and personal expenses) minus grants and scholarships (funds that do not have to be repaid).

 

When calculating net price, school are providing information based on averages for full-time, first-year undergraduate students.

 

 

3.  Why is Net Price Calculator a Good Thing?

 

The reality is that some schools have more financial aid available than other schools. Before NPC, it was difficult for a student to have an idea how much financial aid he or she might be eligible for at a particular school prior to receiving the financial aid award letter. Typically a student does not receive a financial aid award letter until spring of the senior year of high school. NPC will provide students and families with estimated information much earlier in the college search process and help families be better prepared. Students may find that schools they thought were out of reach financially may actually be affordable after grants and scholarships are taken into account.

 

 

4.  Who Will Have a Net Price Calculator?

 

All postsecondary institutions that participate in federal financial aid programs and enroll full-time, first-year degree or certificate-seeking undergraduates were required to have a NPC on their web site by October 29, 2011.

 

 

5.  Where Can Net Price Calculator Be found on a School's Website?

 

Locating the NPC on a school's website may be challenging. Many schools have placed their NPC on their financial aid page, while others have located NPC on their admissions or home page. If you have difficulty finding the NPC, use the school's quick search tool that is often found near the top of the home page. When searching for NPC know that it may also be referred to as a "financial aid calculator", "cost calculator" or something similar.

 

 

NPC will be a valuable tool when researching schools. Keep in mind that the information being provided is estimated and not a final or binding offer from the school.  Also remember that the output information will only be as good as the information provided by the student. This tool is new and like with any new software, it will likely become a better product over time.  Schools will appreciate your patience and your feedback regarding your experiences with NPC.

 

 

Finance Authority of Maine
www.famemaine.com
 
Tel:      (207) 623-3263
           (800) 228-3734
Fax:     (207) 623-0095
TTY:    (207) 626-2717