I’ve seen loads of net price calculators, but the price to pay always seems too low, keeping in mind what I’ve seen on CC. Can you believe them?
It depends. If your parents are self-employed, have rental property, or own a farm, or if you parents are divorced or separated, then probably no. Otherwise my impression is that they are usually pretty good.
Also be aware that some of what they are telling you may involve loans. These loans will need to be repaid at some point with interest.
@DadTwoGirls Would owning a business or a house affect?
Owning the house that you live in is normal. Schools know that quite a few students will live with their parents in a home that the parents own.
Owning a business tends to be quite bad for need based financial aid. Nearly all of the small business owners and farmers that I have talked to that live in the US have sent their children to an in-state public school, if they can even afford that.
@DadTwoGirls Oh no. And yet the calculator gives me a good offer of aid.
Is it that when the financial aid offer arrives, it will be less, due to the fact that my parent(s) own a business?
A lot of people are stunned by how little aid the NPC projects. I’d almost say most people. Make sure you’re looking at the right number. Make sure you’re entering everything accurately. In my case, my expected contribution was about 25% of my income (I’m the parent). My child has no income. This chart is simplistic but a starting place. You can find family income with dependents and then what your estimated family contribution is. As others mentioned, things like your own business can affect the outcome. https://blogs-images.forbes.com/troyonink/files/2017/01/2017-EFC-Table.png
@ProfessorMom1 thanks for that link. Not trying to hijack but that seems more inline. The FAFSA EFC had us at almost1/2 our income.
Also accuracy at individual schools varies. It’s been reported on this forum that NYU’s calculator is not accurate and overestimates aid. It has led to broken hearts when the actual aid offer comes in as unaffordable.
@Dustyfeathers So what school’s net price calculator is held as the most accurate?
@jk201820 If you’ve got high assets, that can affect your EFC. The general rule of thumb is add 5.6% for assets to your EFC. Other things can make EFC lower ( like per kid if you’ve got two in college).
The NPC at Happykid’s in-state public U was dead-on accurate. But that U is FAFSA-only, and only gives out federal aid.
The NPC for my daughters profile school was accurate within $50.
About assets: make sure you’re not reporting any Qualified Retirement Plan funds as ordinary assets.
Owning a business/self employed is problematic because the current formulas add back in some $ items the IRS may allow you to deduct.
That’s precisely the issue I’m on CC trying to explore, @lookingforward, since I’m worried that all my NPC numbers will be way off. My wife’s small retail business had over 100K in sales last year but less than 5K in income on our 1040, after deducting all of our expenses. Any idea how I can get a rough estimate of what colleges will “add back in”? (Or is that done on the FAFSA?)
I’m new at this–our only kid is a junior and we’re just starting the process. But I’m getting a little obsessed already trying to figure out how we’re going to pay for even our state school.
In a couple of months, @TwoHearted, you’ll just be able to fill out the fafsa and then you’ll be clearer on what counts and doesn’t count. We are in the same boat, with self employment, a share of an LLC and always a morass of deductions to complicate things so until I get the taxes done I think it’s a waste of time to play with the NPCs
Fair point, @Gatormama. I’m finishing our taxes this morning, so my mind’s on all of this, and every time I tweak a number in the NPCs, the totals change drastically. (And always up, of course.)
I’m starting to wonder if the College Board’s NPC is rigged to acclimate parents to ever-increasing numbers–kind of like the old adage about frogs in a warming pot of water… 
Ironically, they’re both aware of this issue with SE and stated it should be fixed. That was four or five years ago, iirc.
There’s info somewhere re: what’s added back.
NYU’s NPC at https://www.nyu.edu/financial.aid/misc/npc/ uses what is probably the least detailed of the common NPC templates, so it should not be expected to be very accurate. It does, however, show that NYU financial aid is bad, suggesting a net price of $26,215 for a student from a family with under $30,000 income, so anyone running it should realize that NYU financial aid is bad.
“NYU financial aid is bad, suggesting a net price of $26,215 for a student from a family with under $30,000 income” @-)
Our son was offered a good bit less in scholarship/grant and than the NPC indicated. It was a CSS school, so I assume we got dinged on home equity and anticipated contribution from grandparents. For the school S will probably attend he got offered a little more than the NPC indicated.