What's considered a sticker price for college?

I've been hearing a lot about the 'sticker price' when it comes to college tuition and costs. Can someone explain what the sticker price actually includes and how it differs from the net price?

Sure, happy to break it down for you!

The "sticker price" of a college refers to the total cost it would charge a student without any financial aid or scholarships. This price typically includes tuition, fees, room and board, books and supplies, as well as other personal and transportation expenses. Essentially, it's the college's "full price" as published on their website or other promotional materials.

However, it's important to note that this is often not the price that most students end up paying, especially at private institutions or public ones for in-state students. This is where the "net price" comes in.

The "net price" is the amount a student actually has to pay after all the grants, scholarships, and education tax benefits are deducted from the sticker price. It's essentially the discounted price that many students end up paying to attend college. Net price takes into account need-based financial aid from the government, the state, the college, and other grant sources. It does not consider loans or work-study, however, as these eventually have to be paid back or earned through work, respectively.

A helpful resource to predict this net price is a Net Price Calculator, which every school is required to have on their website. By inputting information about your family's income and assets, it calculates an estimate of the net price.

So while the sticker price can be a bit of a shock, remember that it's not actually representative of what most students end up paying. Always investigate further and look into the net price when considering affordability.