The truth about online net-pay calculators

Because of a federal mandate, every college and university in the country currently has an online net-price calculator that is designed to give students an estimate of how much their first year of college will cost for them.

Although this tool can be used to help a student decide what university is within his or her price range, calculating net-pay is an imperfect science and the results may be misleading.

First off, these calculators are only designed to help students determine their first year at a school based upon what potential financial aid may be made available to them. Since the same aid may not be provided over the following years after initial enrollment, the amount that is calculated will probably not be an accurate depiction of the true cost of that school's education.

Most importantly, no college currently uses a calculator that represents next year's tuition and student fee estimates. Because these rates tend to increase annually at most schools, the number calculated in many cases may be deceptively lower than what the actual bill will read.

Also, the mandate that requires institutions to provide this tool doesn't specify that calculations be made using information from the current school year either. This means that the tuition rates and availability of financial aid that the calculator will base its findings on could be more than just a few years outdated.

The net-pay calculation for a public collegein a state other than the one that a student calls home may also be misleading, as many schools only input information for in-state tuition rather that out-of-state.

College Financing Group can help provide financial aid consulting to students that is more valuable than simply relying on a school's net-pay calculator.