It’s no secret that high school students are looking at the prospect of college more skeptically, and a large part of their hesitation comes from worry about taking on thousands of dollars in student loans.
It’s only natural that they would experience sticker shock after researching the annual cost of attendance at universities that have caught their eye — which might be equivalent to a parent’s annual salary.
But should students count on having to scrape together that full amount?
Not likely, based on EdSurge’s number crunching.
Students generally don’t pay the full cost of attendance at public universities, according to federal data from College Scorecard. While the data only tracks students who receive federal financial aid — be it grants or loans — it shows that students typically get some level of discount even at the priciest public institutions and regardless of income level.
Across 1,800 public colleges and universities, the average full-price cost of attendance clocked in about $17,300 per year. Factoring in students’ grants and scholarships, it fell to a net average cost $10,200.
Yet seeing the gross cost of attendance can be intimidating for college-minded high schoolers and their families, particularly for those who are low-income or who aspire to be the first in their families to graduate with an advanced degree.
Before dismissing a college or university based on sticker price, students should use an institution’s net price calculator to see what they might be paying after financial aid, says Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators.
“Like with all things in postsecondary education, there’s no one size fits all. Some schools would have lots of students that don’t pay full price, and some schools would have most that do,” she explains. But the full cost of attendance is “not what most students pay. So don’t be turned off by the sticker price. Odds are good that what you’ll pay will be discounted to some degree.”
How Family Income Affects Tuition Prices
There were extremes on either side of the net price spectrum, with a handful of colleges reporting that students got money back on average thanks to receiving financial aid, while at others, students saw little difference between the pre- and post-financial aid price tags.
The University of California, Berkeley, is one of the country’s most expensive public universities, with an annual average cost of attendance slightly more than $41,000, according to federal data. That includes tuition, fees, books, other supplies and living expenses.
After grants and scholarships are applied, however, that figure falls to an average net price of about $17,400. Students in the lowest income bracket — with a family income of $30,000 or less — are left with an average net price of $9,200. While not exactly cheap, it’s roughly one-fifth of the original price tag. Students in the data’s highest financial bracket — with a family income of more than $110,000 — saw an average net price of $36,200.
This tracks with an analysis for the Brookings Institution, which found that family income is a better indicator than the full sticker price of what a student can expect to pay for tuition. Nonresident senior fellow Phillip Levine found that, between the 1995 and 2019 academic years, the share of college students who pay the full cost of attendance fell from 53 percent to 26 percent for those enrolled in state at public colleges. It fell from 29 percent to 16 percent for those enrolled at private, nonprofit colleges.
“The typical net price increases with income,” he states in the report. “Every additional dollar of income translates to around a 16-cent increase in net price.”
The net cost of a higher education has gone up for students at all income levels, he writes.
Given all of the variables that go into calculating how much need-based financial aid a student will get — not just how much parents earn, but factors like family size and the cost of the university — Desjean says price can be a barrier to students of any income level. However, lower-income families are typically looking at tougher choices when it comes to covering college expenses.
“I think low-income students are maybe disproportionately impacted, even with financial aid, just with having less discretionary income,” Desjean says. “A higher-income family might say, ‘We can’t take a vacation this year.’ Whereas a low-income family may never take a vacation, so the things they’d be looking at giving up would be cutting their already tight grocery budget.”
First-generation or low-income students may also be less aware of financial aid that’s available to them, she says, while other students may have people in their lives who can give advice on and encourage them to explore all the aid options available.
Even families with similar incomes can have widely different expenses making demands on their budgets, Desjean adds, or have different mindsets about whether they can cut back to pay for college.
Organizations like the National Association of Student Financial Aid Administrators
are trying to dispel myths about financial aid, namely that it’s too difficult to apply for or that students shouldn’t apply if they assume they’re ineligible.
The U.S. Department of Education did itself no favors when its chaotic rollout of the new FAFSA system during the 2023-2024 school year hit technical snags that caused some students to miss out on money.
That’s a shame, Desjean says, because the new system did deliver on its promise to make applying for federal aid faster and easier — if students could use it.
“This year should have been the year we could really celebrate those changes and say, ‘Look, everyone, it’s easy to apply for financial aid. Go ahead and do it,’” she says. “Unfortunately it kept with the old narrative, or it may have even amplified the old narrative. So I think the work we all need to be doing in the college access space is trying to remind students, ‘This year was not great, but there have been improvements to the FAFSA. Next year is going to be even better. Don’t be intimidated.’”
