How one family works together to enable higher education
The use of financial planning, transparency and resources to manage university costs is important.
Families of university students are often overwhelmed when they look up the “sticker” prices at schools where their children are interested. The annual price at many well-known schools is less than $100,000, when combined with tuition, fees, rooms, boards and books.
For example, NYU lists attendance costs estimated at $96,988 for students living on campus between 2025 and 2026.
At George Washington University, the estimated cost of this year is $92,345, while at Boston University, the estimated cost of attendance is $94,427.
According to the New York Times, the average sticker prices rose by about 70% in 25 years in 1995 at both private and public universities.
However, parents and students must look beyond the price of the sticker. This is far more than what a huge number of families actually end up paying. “On average, private nonprofits have cut tuition fees by more than half for first-time undergraduates, according to the Association of University and University Business Officers Associations.”
Additionally, the costs for many families are offset by needs-based financial aid, merit scholarships, or both. Currently, it is a graduation requirement for all New Jersey high school students to have their families submit a FAFSA (free application for federal student aid) unless they abandon this provision. FAFSA estimates what families can afford to contribute to their children’s college education next year, and sends this number to all universities students are applying to.
Billions of dollars of merit-based scholarships are also awarded annually by both individual universities and private scholarships. Discover.com offers a scholarship search database that includes 4 million scholarships worth more than $22 billion.
What families need to compare is the “net price” they attend each university they are considering. To calculate this number, parents can access net pricing calculators available on many university websites. Enter the required information. Student dependency status, household membership, parent income and assets, student financial information. Sometimes you also need a SAT score and GPA.
Once completed, parents have a good estimate of what the out-of-pocket costs for their children to attend college. To be safe, parents should contact their base with each university by inquiring whether the website’s net price calculator has been updated to reflect the school’s current costs and financial aid policy.
Susan Alaimo is the founder and director of CollegeBound Review, offering PSAT/SAT® Praite & Private College, providing advice from Ivy League-educated instructors. Go to collegeboundreview.com or call 908-369-5362.
