Giving Compass' Take:

• Skyler Lucci explains why elite universities are often a more affordable option than low-income families believe because the financial aid process is confusing. 

• How can funders help to simplify and clarify the financial aid process? What types of support do low-income families need to make informed decisions about higher education? 

• Learn about the college counseling equity gap


For many families, the rising price tag of attending college is intimidating, and cost is a major factor during the process of deciding which school is the best fit for their child. On the surface, this makes sense, especially since the published price of attending some of the nation’s most elite private universities — tuition, room, board and other expenses — tops $70,000 per year. However, even the most selective schools may be more affordable than parents think.

Research conducted by The Hamilton Project shows that although the most competitive schools have the highest published prices, they also have the lowest out-of-pocket costs for low-income students. With need-blind admissions and generous financial aid programs, these schools can be the most affordable option for low-income families, while also providing an excellent education. On the other hand, many seemingly less expensive and less competitive schools ultimately cost low-income students more out of pocket and provide fewer educational resources.

What accounts for the discrepancy between published tuition and what students actually pay? Data from the College Board show that the total published price of attending private nonprofit four-year institutions increased an average of 2.7 percent per year (after adjusting for inflation) since 1998. During the same time period, the average net price (what students actually pay) increased an average of 1.3 percent per year. Over time, those differences add up, and at four-year private universities in the U.S., only about 10 percent of students pay the full published price.

The problem is that many students and parents don’t fully understand the financial aid process or the difference between the published and net prices, also known as tuition discounting. Financial aid applications are confusing and can be a strong deterrent for low-income students applying to college. Deadlines, complex questionnaires and uncertainty about the amount of aid awarded until the end of the process disincentivizes even some of the best students from applying to selective schools.

Read the full article about the affordability of America’s elite universities by Skyler Lucci at The 74.