How is the net price calculated for Ipeds?

The calculation of average net price is a crucial aspect in understanding the financial burden of attending a particular educational institution. It is derived through a specific mathematical process that takes into account various financial aid sources.

The starting point of this calculation is the total cost of attendance, which encompasses tuition fees, room and board, books and supplies, transportation, and personal expenses. This total reflects the full financial obligation of a student to attend the institution.

To determine the average net price, the next step involves identifying and quantifying the average amount of financial aid received by students. This includes grants and scholarships provided by federal, state/local governments, or the institution itself.

These grants and scholarships are designed to offset the total cost of attendance, making education more accessible and affordable for students. The average amount of these financial aid awards is then subtracted from the total cost of attendance.

The result of this subtraction is the average net price, which represents the amount of money a student can expect to pay out-of-pocket after accounting for all financial aid received. This figure provides valuable insight into the true cost of attending the institution for the average student.