There are several "cost" numbers associated with attending college, and they're often used interchangeably — which causes real confusion.
Total Cost of Attendance
This is the broadest number: everything from tuition to transportation. It's what schools use for financial aid calculations and what CollegeLens uses as the baseline for your gap calculation.
Net Price
Net price is COA minus grants and scholarships. This is the cost after free money is removed. It's a better number than sticker price, but it still includes loans and work-study as if they reduce the cost — which they do only if you pay them back or earn them.
Out-of-Pocket Cost
This is the number your family actually needs to plan around. It's:
COA − (Grants + Scholarships + Savings + Family Contribution) = Out-of-Pocket Cost
This is the amount that will be paid from current income, covered by loans, or need to be earned through work.
Why this matters
The difference between net price and out-of-pocket cost can be significant. A school with a low net price can still have a high out-of-pocket cost if your family has limited savings and contribution capacity.
Planning around the right number
When your family budgets for college — monthly, per semester, per year — the planning should be around out-of-pocket cost, not COA or net price. That's the number that connects to actual cash flow and borrowing decisions.
CollegeLens calculates your out-of-pocket cost when you add your full financial picture, including savings and family contribution. That's the number your dashboard is built around.
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