Net price vs sticker price.
In plain English
Sticker price is the published cost of attendance a college advertises before any aid. Net price is what you actually pay after subtracting grants and scholarships, the aid you don't repay. The two can differ by a lot, because many students never pay the full sticker. Net price counts only gift aid; loans are not subtracted, since money you borrow still has to be paid back with interest. Every college is required to post a Net Price Calculator on its website so you can estimate your own net price before applying.
01Why it matters
Comparing schools by sticker price can be badly misleading: a pricier-looking college might cost you less after aid. Net price is the number that reflects your real out-of-pocket cost.
02The math, step by step
A college with a $50,000 sticker price that offers you $30,000 in grants has a net price of $20,000 for you. A college with a $35,000 sticker that offers no grants has a net price of $35,000. The higher-sticker school is actually cheaper. Note that any loans in an offer are not subtracted, because you repay those later.
03What this is NOT
Net price does not subtract loans. It subtracts only grants and scholarships you don't repay. A loan lowers what you pay today but not what college actually costs you, so it is left out of net price.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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