The Obama administration unveiled its new College Scorecard with much fanfare this month. Highlighted to college-bound students as a way to “get the most bang for your educational buck,” the Scorecard is intended to serve as a consumer guide for higher education. The first section of the Department of Education’s new College Scorecard features the average net price of attendance at the selected institution. To guide users, the scorecard categorizes these average net prices as low, medium or high.
There’s just one problem: no student is average.
Consider a low-income applicant to the University of Pennsylvania, a school with a high sticker price. At Penn, a full-price student pays $59,600 (including tuition, room & board, and other fees) and a low-income student with a full scholarship pays $0. The average net price across these two students is $29,800. (As it happens, Penn’s reported average net price is $20,592.) Just like high sticker prices, high average net price can mislead students from modest circumstances looking for affordable college options. Many colleges – particularly prestigious schools with high sticker prices – are committed to building socioeconomically diverse student bodies. At such schools, students’ individualized net prices can vary significantly depending on their financial circumstances.
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