The New InstitutionalNet Price Calculator Requirement in

HEOA

Elise S. MillerNational Center for Education Statistics

U.S. Department of Education

Agenda

• Background• U.S. Department of Education’s

Net Price Calculator Template– Screen Walkthrough

• Next Steps for Institutions• Resources

Background• Higher Education Opportunity Act (HEOA)

– Signed into law on August 14, 2008– Includes many new disclosure requirements

= your institution must disclose information to the public in some manner (e.g., on its website, in its promotional materials)

– Requires that institutions have a net price calculator on their websites for full-time, first-time degree/certificate-seeking undergraduate students

Background

• Requirement• All institutions must have a net price calculator

posted on their websites by October 29, 2011• An institution may either use the Department’s Net

Price Calculator template or it may develop its own• Note: Institutionally developed calculators must

include “at a minimum the same data elements” found in the Department’s Net Price Calculator template

Background

• Purpose– “to help current and prospective students, families,

and other consumers estimate the individual net price of an institution of higher education for a student. The calculator shall be developed in a manner that enables current and prospective students, families, and consumers to determine an estimate of a current or prospective student’s individual net price at a particular institution.” - P.L. 110-315, sec. 132 (h) (1).

Background• HEOA Definition of Net Price

Institution’s price of

attendance for FTFT* students

Institution’s price of

attendance for FTFT* students

Total need- and merit-based federal, state, and institutional grant aid awarded to FTFT*

students

Total need- and merit-based federal, state, and institutional grant aid awarded to FTFT*

students

Number of FTFT* students receiving such aid

Number of FTFT* students receiving such aid

Price of attendance = average annual cost of tuition and fees, room

and board, books, supplies, and

transportation

Price of attendance = average annual cost of tuition and fees, room

and board, books, supplies, and

transportation *at a minimum -- you can also provide net price for other

types of students: part-time; graduate students; etc.

Net Price Calculator Template• Process

– A Technical Review Panel (TRP) meeting was held in January 2009

• Keep template simple and usable for all Title IV institutions

• Recognize that institutions have an interest in customizing their calculators

Net Price Calculator Template• How It Works

Institutional Data

Maintenance Application

Institutional Data

Maintenance Application

www.institution.edu/....www.institution.edu/....

UserApplication

UserApplication

Net Price Calculator Template• How It Works

– Institutions input the following data:• Price of attendance• Median amounts of grant and scholarship aid awarded to,

and accepted by, first-time, full-time degree/certificate-seeking students by EFC range

– Users are asked nine questions to establish the following:

• Their dependency status• Their estimated cost of attendance• Approximated EFC

Net Price Calculator Template• How It Works

– The template uses a look-up table populated with data from the FAFSA applications database to identify a median EFC from a previous year’s data

– Median EFC is matched with the median grant and scholarship aid amount entered by the institution for the corresponding EFC range and data year to determine the student's estimated amount of total grant aid

– Estimated net price is calculated by subtracting estimated total grant aid from the estimated total cost of attendance

Net Price Calculator Template

• Screen Walkthrough

http://nces.ed.gov/ipeds/resourcehttp://nces.ed.gov/ipeds/resource

Institution ApplicationInstitution ApplicationNet Price Calculator Template

Net Price Calculator Template

Step 1: Determine year and calendar system

Step 1: Determine year and calendar system

Step 2: Set updata

screens

Step 2: Set updata

screens

Step 3, Table 1: Enter

price data

Step 3, Table 1: Enter

price data

Step 3,Table 2:

Enter grant and

scholarship data

Step 3,Table 2:

Enter grant and

scholarship data

Step 4: Enter

explanations and caveats

Step 4: Enter

explanations and caveats

Template explanation

Template explanation

Step 4: Enter

explanations and caveats,

continued

Step 4: Enter

explanations and caveats,

continued

Step 5: Review

information entered

Step 5: Review

information entered

Net Price Calculator Template

Step 6: Download

and extract files

Step 6: Download

and extract files

Net Price Calculator TemplateThe End User’s ExperienceThe End User’s Experience

Screen 1: User

answers basic

questions

Screen 1: User

answers basic

questions

Net Price Calculator Template

If student answers, no, sent to output screen and shows net price for non-

FAFSA filers

If student answers >23, then considered

independent.

Determines which cost of attendance to use to calculate net

price.

Screen 2: User

answers questions

Screen 2: User

answers questions

Net Price Calculator Template

If married, assumer independent.

If have dependent children, assume independent.

Else, assumes dependent

Dependency status the used as one characteristic in EFC “look up” table

Screen 3: User

answer questions

Screen 3: User

answer questions

Each used as characteristics in median EFC “look

up” table

Screen 4: User

reviews information

entered

Screen 4: User

reviews information

entered

26

Behind the scenes:

Application “looks up”

median EFC (from ED data

built into template) and

cost of attendance

(from institution-

entered data).

Behind the scenes:

Application “looks up”

median EFC (from ED data

built into template) and

cost of attendance

(from institution-

entered data).

Output: Producenet price output

Output: Producenet price output

Explanations and caveatsExplanations and caveats

Estimatednet price

Estimatednet price

Next Steps for ED Template

• Bulk/batch data upload option -- Coming Soon!– State/system can use to create individual

calculators for multiple campuses– Institutions could use to create multiple

calculators for multiple programs

Next Steps for ED TemplateFocus Groups• Recently held two focus groups:

– (1) students & parents on user app, and – (2) institutional reps on input app

• When we release next version of calculator with updated EFC tables, we may also tweak based on focus group findings. The minimum data elements and HEOA definitions will not change.

Minimum Required Elements• Input elements must include:

– Data elements to approximate the student’s Estimated Family Contribution (EFC), such as income, number in family, and dependency status or factors that estimate dependency status

• An institution may use either Federal Methodology or Institutional Methodology to approximate the student’s EFC.

Minimum Required Elements• Output elements must include:

– Estimated total price of attendance; – Estimated tuition and fees; – Estimated room and board; – Estimated books and supplies; – Estimated other expenses (personal expenses, transportation,

etc.); – Estimated total grant aid; – Estimated net price; – Percent of the cohort (full-time, first-time students) that received

grant aid; and – Caveats and disclaimers, as indicated in the HEOA.

Decision for InstitutionsWhich approach should your institution use?

– Use the Department’s template– Develop your own*

• Update an existing calculator (e.g., financial aid calculator)

• Use a third-party calculator (state, vendor)– Note: Department has not endorsed or approved any

calculators

• Create a calculator in-house– Table-based approach– More complex model of award algorithm

*Must contain, at minimum, the same elements as the Department’s template

Decision for InstitutionsWhere will the calculator “live” on your institution’s

website?– Will it be on homepage, admissions, financial aid,

consumer info site?– The NPC is one of several institutional disclosure

requirements– Coordinate with other units on your campus– Institutions to report their net price calculator URLs in

IPEDS

Resources

• http://nces.ed.gov/ipeds/resource/net_price_calculator.asp– Template – U.S. Department of Education Net Price Calculator Template – Related Files – Expected Family Contribution (EFC) Tables – Template Source Code – Readme File – Glossary – Quick Start Guide

Resources

– List of Minimum Required Elements – Frequently Asked Questions about the

Department’s Net Price Calculator Template (specific to how the ED template works)

– Frequently Asked Questions about the Net Price Calculator Requirement (policy, compliance)

– AIR Net Price Calculator Resource Center

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Contact Information

We appreciate your feedback and comments. We can be reached at:

Elise Miller (Template)Email: Elise.Miller@ed.gov

Jessica Finkel (Requirement)Email: Jessica.Finkel@ed.gov