Also in this playlist...
This transcript is automatically generated
Let's constitution costs continue to skyrocket and student debt -- the federal government has recently unveiled the new online tool that cleans helps families figure out the too -- to college.
But isn't everything it's hyped up to be Jim Boyle is -- Advertisements marketing firm he's also the former president of college parents of America.
-- -- -- Consumer Financial Protection Bureau puts this out then you're saying it's not all that.
Well there's just so many calculators out there that is the problem I mean there is already -- that net price calculators were requirement for colleges and universities to put on their web sites.
October 20 ninth -- 2011.
-- calculators are.
Attempting to do the job.
-- tell parents understand the cost of college.
Now suddenly there's this other calculator that's coming from a different and new unit of government.
And so I think it just has parents spinning their heads as to what calculator -- my supposed to look at and what are these calculator supposed to tell me.
Is an average prime -- university.
For is about you know 42000.
Dollars -- so.
Don't I just ballpark gift from -- -- -- -- just a lot that I don't need a calculator tell me that.
Well the purpose of these calculators to Begin with -- because the colleges and universities have been saying for years there's a difference between the sticker price and the net price of college.
So as costs have risen at both public and private schools.
Universities have been quick to say oh that's the sticker price but not everybody pays the sticker price the net prices much lower.
And it is true that most people don't pay the sticker price for college.
So the intent and tension of the net price calculator was to help families understand what their costs might be a particular colleges and universities.
The problem as is that most schools many schools are using what's called the federal template.
And the federal template -- so bare bones.
That if someone fills that out there really getting a very sketchy view then of what college might cost and it's and erratically.
It's really hurting low income students.
The low income students are likely to benefit from.
Avenues of aid.
And the college.
The federal -- that is so -- bonds but it's not taking that into account it's creating an upside down situation at some schools where students are gonna.
Fear that they are not going to be able -- afford college.
-- I think the better calculator is for the kids to figure out what kind of grants they can get I mean there's a huge assumption here that kids are gonna get grants and -- And certain government finance announcing a loan debt you know like candy but he's up to apply for it and get it we think that's the better calculator these kids need to see.
Well it's a multi step process that the net price calculator is is really force students who are sophomores.
Juniors in high school early part of senior year before they're applying for college to get some sort of a ballpark of what the various colleges might cost.
But then the rubber hits the road in January of senior year when the student -- to fill out if they want any aid.
What's known as the staff -- the free application for Federal Student Aid that leads to.
A more real number which is called the expected family contribution.
However not all colleges and universities.
Have enough in their financial aid budgets to provide the aid to families to meet that.
Number -- didn't tell us quickly you have a calculator out there are not so -- you know is coming up my -- this.
Yes I put together site because of the fact that these calculators are literally -- all over the map.
I put them in one site net price calculator dot info.
And have loaded in that net price calculators from every school -- the country so that there's one place for families to go and check out.
You know one at a time without having to surf all sorts of university web sites and then go within those web sites to find the calculator fixing go to net price calculator dot info and look at them -- right from the top.
It's a good place to start I think at the end of today it's just this scary sum of money Jim -- thank you so much your being with us -- -- the -- later together.
Thank you again -- -- net price -- leader dot info.
I just know it's a -- I don't need a calculator can tell me that I'm going to be broke while all three kids during college.
Filter by section