Tuition calculators can put college within reach for many

Wed, 16 Jan 2013 14:02:00 +0000

A 2008 federal law requiring colleges to provide online net-price calculators has had limited success with families preparing to send their children to school. While they are intended to help parents get a clear picture of the real cost of college, these calculators often ask for a dizzying array of financial information unfamiliar to the people using them.

The results can be bewildering. That's why so few parents -- especially lower income families -- are using them.

As reported by the Times:

Just answering the most important basic question — how much a family earns — can be baffling. Some calculators want all wages included, others exclude money set aside for 401(k) or I.R.A. plans, and others ask for adjusted gross income...

Many colleges insist on a specific income figure, but some — mostly state colleges — ask for ranges, making the results less precise. For example, the University of Michigan’s calculator produces a net price range, which can be more than $10,000 wide.

When a calculator presents a financial aid figure, it can be labeled a grant, a gift or a scholarship, depending on the college. For low- or moderate-income students, some colleges specify that the aid includes government grants, while others do not, implying that all of the aid would come from the college. Some calculators also muddy the distinction between a grant, a loan the student must repay and money a student must earn at a work-study job.

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Tuition calculators can put college within reach for many