On the college’s net price calculator web page (or the page that links to its net price calculator hosted by a provider like The College Board, MeadowFi, etc.)…
A college that uses both divorced or separated parent’s finances should clearly state that both of their finances must be included in the net price calculator inputs, and that both parents must fill in the appropriate financial aid forms.
A college that uses only the custodial parent’s finances should clearly state the definition of custodial parent (currently the parent who provides the greater amount of financial support to the student).
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“A retirement account is a 401K, IRA, TSP, or other legally recognized tax deferred savings plan. Funds held in a taxable account will be considered like any other asset, even if the account is intended to be used for retirement.”
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If your current salary information does not match the information you are asked to provide, you are still required to use the information for the year requested. Any adjustments due to loss of income must be done (by contacting the financial aid staff and providing required documentation) on a case by case basis, and adjustments are not guaranteed.
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For schools that use IM to award their own aid: If one or both parents own a business, the NPC may not provide an accurate picture of financial aid. Please contact the financial aid office for further information (or the school can provide a link to an explanation).
Or better, if the college could provide instructions on how to fill in the NPC to make it more accurate in this case (of course, this means having an NPC that can be filled in such that it can be accurate in the small business situation).
Yeah but…
Small business number 1- dad is a solo proprietor of a tax preparation company. There is no inventory, the “write off’s” are a portion of the house where business takes place, phone and internet service, a few fedex pickups per year for clients who don’t e-file. And Dad leases the car he uses to visit clients. Bought new computer last year and then new home office furniture.
Small business number 2- mom buys vintage clothing and accessories at yard and estate sales, upcycles them, sells them on various online platforms. Has five employees (the seamstress who does alterations is a 1099 contractor, the others are W2 employees). She rents a climate controlled storage facility for her inventory, owns a small truck for moving inventory around when needed, advertises on various vintage clothing websites, donates unsaleable merchandise to thrift stores, is a member of a barter group (she rehabs and alters abandoned items in exchange for dry cleaning at a local business), has her office in her home but rents a small storefront for a few “couture” level items and for her employees to work from.
Small business number 3- that dry cleaner. Owns two buildings- one for the storefront, the other in an industrial park where the actual machinery and equipment is located. 10 employees, 3 family members in addition. High energy and insurance costs (working with toxic chemicals will do that- both health insurance and liability).
Do you think there is a “formula” which would cover all three of these and be at ALL helpful in determining financial aid??? “Expenses” is a broad term covering things that are clearly allowable plus a lot of stuff which isn’t.
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Just making people aware that the NPC won’t necessarily be valid for this group is a big help. From there, people can talk to the aid office to get a better idea of what to expect given their circumstances.
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On the results page they should clearly delineate the direct-billed costs (tuition, fees, and room & board) from the cost of attendance. Since schools can vary significantly in how generously they determine the non-direct-billed costs of items like transportation, books, and personal allowance, keeping the two items separate helps consumers to make an apples-to-apples comparison.
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I’d love to see a statement somewhere that states the purpose of the NPC. Is this an estimate that the college will stand by as a MAXIMUM cost when applying for financial aid? If so, then being really explicit about the caveats will also be necessary (including the ones others have noted like divorces, businesses, etc.)
I would also like to see a statement that says it’s an estimate and you might get MORE aid than is listed. I think sometimes folks get caught up that if the cost shown doesn’t meet the exact budget, that they should take it off the list when it seems like at least some times and in some cases the actual delivered aid award is greater than what the NPC said.
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