The Brookings Center for Economic Security and Opportunity hosted a panel on October 27, 2026, examining how families finance four-year degrees. Experts discussed why the college financial aid system remains complex, how sticker prices mislead applicants, and why families must discuss college affordability early in the admissions process.
Financial equity complicates college pricing systems
The financial aid system remains extraordinarily complicated because the pursuit of financial equity causes different students to pay different prices, according to Phillip B. Levine, the Katharine Coman and A. Barton Hepburn Professor of Economics at Wellesley College. That focus on equity comes at the expense of overall efficiency, making it difficult for families to gauge what a college actually costs before applying, the Brookings Institution reported.
Ron Lieber, “Your Money” columnist for The New York Times, agreed that attempts to direct financial assistance to students with the greatest need have reduced overall transparency. Christina Lopez, former dean of enrollment management at Barnard College, framed the main issue around timing. Families typically discuss college affordability only after acceptance letters arrive, rather than addressing costs at the beginning of the application process.
Official sticker prices mislead prospective families
Colleges must post their official cost of attendance, known as the sticker price, but Levine explained that this figure represents the absolute maximum a family could be asked to pay. Most students pay less, yet families frequently see this initial number and mistakenly assume specific institutions are financially out of reach.
Federal regulations require colleges to provide net price calculators to estimate actual costs after factoring in financial aid. However, Lopez noted that these calculators are not always properly maintained and often fail to capture the nuances of complex family financial situations. Lieber suggested that colleges should simply publish clear prices for different types of families upfront, though families can still use current calculators as a starting point by bringing screenshots to financial aid offices.
Financial aid divides into distinct funding categories
Levine outlined the differences between need-based and merit-based financial aid. Need-based aid bridges the gap between the official cost and what the Free Application for Federal Student Aid or the CSS Profile determines a family can afford. Merit-based aid rewards academic strength, but for students with demonstrated financial need, merit awards often replace need-based aid under a more appealing name. Both Levine and Lieber described merit aid as an unpredictable marketing tool that schools use to maintain institutional prestige and hit enrollment targets.
Lieber pointed to the Common Data Set as a practical tool for understanding who receives merit-based aid. Meanwhile, Lopez highlighted that new annual and aggregate limits on Parent Loan for Undergraduate Students (PLUS) loans require families to plan ahead to avoid exhausting their borrowing capacity before graduation. Levine added that students borrowing modest federal loan amounts independently can still make sound financial sense.
Frequently Asked Questions
What is the difference between a college sticker price and a net price?
The sticker price is the maximum published cost of attendance, while the net price reflects the actual amount a student pays after factoring in financial aid.
How do net price calculators work for early decision applicants?
Net price calculators estimate individual costs based on financial inputs, but they often miss family financial nuances, a gap that matters even more for early decision applicants.
What is the Common Data Set used for in college admissions?
The Common Data Set is a useful tool for understanding who receives merit-based aid.