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What Exactly Does 'Sticker Price' Mean in College Tuition?

As I dive into the college application process, the term 'sticker price' keeps popping up, and I'm a little confused. I get that it refers to the published cost of attending, but how should I interpret this number? How often do students actually pay this amount, or do most receive financial aid that lowers the cost significantly? Would love some clarification and any tips on navigating these financial waters!

a year ago

The term "sticker price" refers to the cost of college as published by the institution itself. That is the full cost of attendance without factoring in any financial aid or scholarships. It usually includes tuition, room and board, any fees the school charges, and the estimated cost of books and personal expenses.

When evaluating college costs, it's essential to remember that most students do not end up paying the sticker price due to various types of financial aid, such as need-based aid, scholarships, and federal loans. The average student at a four-year private university pays less than half of the sticker price. The net price of a college, after deducting scholarships and grants, is a more practical number to consider.

However, the amount of aid offered can vary greatly between different colleges, and the amount the typical student pays can also vary widely. Cornell University's sticker price, for example, is relatively high, but most students receive substantial aid. On the other hand, a public university may have a lower sticker price, but offer less aid to students.

To figure out what you might pay, check out the net price calculators on college websites. These calculators estimate what you might pay based on your family's financial information. But, remember, these calculators provide estimates — actual financial aid packages may vary.

As a rule of thumb, don't let sticker prices discourage you from applying to a college. Apply to the schools that interest you the most and see what financial aid packages they offer. You may be pleasantly surprised by the aid you receive! Be sure to continue exploring scholarship opportunities as well, which can further decrease the cost of attendance.

a year ago

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