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How to Compare College Costs

To make it possible for families to compare college costs, Congress enacted legislation requiring schools to put a "net price calculator" on their websites. But these calculators are limited. They only show data for

"full-time, first-time" students.

Students for instance, who want to earn a college degree online (maybe part-time) will not have an easy time making comparisons.

Fortunately, the U.S. Department of Education collects and publishes these statistics as well.

And they have combined them into an average based on the type of higher education institution that students attend.

Types of College Degrees- Average Costs

Four Year Schools

compare college costs 4 year schools, bar graph

Two Year Schools

compare college costs 2 year schools, bar graph

These figures are from the Department of Education's report for 2009. (The graphs are mine.)

Unfortunately, these figures may not be useful for certain types of comparisons. The numbers for public schools seem to make that choice the obvious best for both types of degrees, however, only in-state student costs are included in their averages.

If out-of-state students were included, averages for public school costs would skyrocket. (For instance, tuition and fees for in-state University of California students are $11,124 for 2011-2012. For out-of-state students, they are $34,164.)

Another problem is how the Department tries to get a realistic figure for room and board for the different types of schools. They use a weighted average which combines:

on-campus
off-campus, living separate from family
off-campus, living with family

This calculates a single average price, which means that it is an estimate, and that estimate is combined with actual figures of tuition and fees to produce net prices.

While this "weighted average" may be theoretically accurate, it might not realistically portray any individual student's actual costs.

And when families are deciding whether or not a student should live at home or on-campus, it is hard to put a price on something you are already paying for (possibly without even noticing it).

It is hard not to notice that the net price of the for-profit schools does not change much from the "book" price.

Does that make them uneconomical?

Not necessarily.

They are a cheaper alternative for many students who might go to out-of-state public schools (whose costs are not included in the data).

In many cases they are a cheaper alternative to a private not-for-profit school, if the student's situation makes it unlikely they will get grant money. And a student might find it more economical to live at home, work, but also "earn college degree online" at a for profit school. It is impossible to compare college costs without considering your individual situation and what makes sense for you and your family.

So, how do you compare college costs using net price calculators and the U.S.Department of Education's average costs?

For each school you are considering, check their "net price" against the average net price for the schools in that category. That way, you are at least comparing oranges to oranges and not apples.

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