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A college cost calculator, in the United States, is an online tool allowing students and their parents to calculate how much college is likely to cost. [1] [2] Numbers are input into the online calculator, and if done properly, it gives an estimate of the likely expenses for that student attending that particular college.
As defined in The Higher Education Opportunity Act of 2008, the net price calculator's purpose is: "…to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student.
Colleges are also required to post a Net Price Calculator, that determines for each prospective or current student a personalized Net Price, which is the COA minus need- and merit-based grant aid (not including loans or work-study programs). Financial aid cannot exceed the cost of attendance.
In the fall of 2011, colleges were required by federal law to post a net price calculator on their websites to give prospective students and families a rough estimate of likely college costs for their particular institution, [58] [74] and to "demystify pricing".
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In 2017, a federal endowment tax was enacted in the Tax Cuts and Jobs Act of 2017 in the form of an excise tax of 1.4% on institutions that have at least 500 tuition-paying students and net assets of at least $500,000 per student. The $500,000 is not adjusted for inflation, so the threshold is effectively lowered over time.
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