Colleges will have to make their total price (net price) more obvious and easily accessible. This way, it will be more clear exactly what students will have to pay for college, instead of the current, very vague, very unclear ways to find out what the true cost of college is. 31% of students stated the reason they had paused their education was because of costs (Brown). This shows that currently, college costs are difficult to predict and plan for. Only 23% of adults without a degree could guess within $5,000 the cost of a bachelor's degree (Brown). 65% of students decide on their college based on sticker prices (Bermejo). 56% of adults who have either not completed or never started their college education didn’t continue or start due to costs (Brown).
Students will be more aware of what they are going to be paying for college, clearing up any misconceptions. It will be far easier for them to plan ahead and have less hiccups in their education if they know exactly what they need to pay, without too many unexpected prices (Goodman). A more accurate total price can catfish students into thinking that the school they are going to is more high quality than they really are. Students will also be able to calculate how much financial aid they need more easily, and apply for them as needed.
Conversations surrounding college will be far more accurate and realistic, since the prices being discussed will be real, and not an inflated and inaccurate one. College will also be more accessible to less financially fortunate people, since they will know exactly what they will need to pay for college, and they won’t have to worry about sudden influxes in price, or take the risk without knowing future costs.
Low income families: Many low income families are not completely aware of all the financial aid options open to them. Many adults believe that all students pay the same amount of money with the same income (Brown). This change will allow them to plan ahead easier, and make costs less scary, since they are usually less expensive than the sticker price says. Data that is only accessible through emails could put many students at a disadvantage as many might not even know that the data is available
Post secondary institutions: as the price of college will appear to be much lower and much closer to what it actually is, increasing the number of students that are actually able to enroll, thus generating more money for the institution
Politicians interested in education: Without changing any factors of the actual cost of post secondary institutions, the prices of post secondary institutions seemingly has gone down which supports the public image that something is being done
This solution wouldn’t actually do anything to lower school prices. It might increase competition, and force colleges to lower prices in the long run, since there is less to hide, but at the end of the day that will take a while, and price drops are not guaranteed. It might make college more accessible to the less rich, but you still have to be able to pay something around the normal prices in order to benefit at all in the short run.
Post secondary institutions: Every student is different and being able to calculate a total price for every specific student is going to be difficult, and most likely not that accurate, rendering the whole policy useless and more of a waste of money and time. Students who do not want to take a typical 4 year college route will not receive an accurate calculation
Prestigious private post secondary institutions: as some higher end institutions such as ivy league schools take pride in the high quality of their education and that is often reflected in the price. Many people associate high prices with good education, so by making the price seem lower, it would make the education seem worse in comparison
A total price would still be inaccurate because of all the factors, but being able to have a slightly more personalized calculation will certainly help more with accessibility, reduce sticker shock, and allow for all students to plan better, regardless of social standing or income. It’s certainly better than nothing
Reputation means a lot, especially to students with high hopes and ambitions to get into many high level institutions, so even if the price seems lower, the reputation alone is enough to keep students enrolling and by comparison, the prices will still be just as high as they were before because the prices of all other institutions will also be lowered. Additionally, students are not paying any less for the same education, it only seems like it is less as the price to attend is more accurate, even though the student is paying the same and the institution is making the same amount of money
Legislation in the form of a bill and presidential approval would be needed to impose a nationwide regulation. The legislation would need to include the following:
Requirements that post secondary institutions provide:
The distinction and separation of loans from grants and scholarships in price calculations
A concise statement that grants and scholarships are gifts that do not need to be paid back as well as the sources of grants and scholarships
The net (“actual”) cost of one year’s tuition (through an easily accessible and user friendly calculator)
Requirements that post secondary institutions must also:
Use clear and easily understandable language (e.g., no abbreviations or acronyms) (Coker and Glynn)
Make the exact amount of money won through institutional awards clear, understandable, and accessible
Make policies and requirements surrounding student aid very clear, definitive, and understandable