Concealing the Calculus of Higher Education New York Times

An undergraduate degree from a flagship state university often comes with a six-figure sticker price for on-campus residents. A private college could cost a quarter of a million dollars nowadays.

So since 2011, the federal government has required all schools to provide something called a net price calculator on their websites. You put in some financial data, and the calculator estimates what your actual cost would be, after any scholarships. If you aren’t among the very affluent and are applying to a private college, that net price can be tens of thousands of dollars below the list price.

Not long after the calculator became standard, a service called College Abacus emerged, allowing families to compare multiple schools at once. That spared them the laborious task of plugging the same data into multiple calculators many times over.

And how did many colleges respond? By blocking College Abacus’s access to their calculators. Imagine if Expedia or Kayak could not search for tickets on some of the most desirable airlines, and you get the idea.

Since I first wrote about College Abacus in late 2014, several schools, including Oberlin, Skidmore and Hamilton, have lifted their blocks. Others, however — like Harvard, Princeton and the California Institute of Technology — have not.

This week, I asked all of them some pointed questions. Choosing which school to attend is one of the biggest financial decisions that many people will ever make. And unlike other similarly consequential decisions about what house to buy or where to invest your retirement money, there is precious little data to use when picking a college. So why on earth would a school want to make it harder for people to compare the potential costs, which is one bit of data that actually is readily available?

At first, College Abacus left plenty of reasons for schools to be suspicious. Would it charge users? Sell their data? Ultimately, it decided not to do either. It’s now a unit of the ECMC Group, which, among other things, represents the federal government in bankruptcy court when debtors try to discharge their student loan debt. That alone probably raises some eyebrows, though no school officials I spoke to said this.


Continue reading the main story Continue reading the main story RELATED COVERAGE

Economic View: Student Debt in America: Lend With a Smile, Collect With a Fist Fair Game: A Student Loan System Stacked Against the Borrower Your Money Adviser: How to Approach Student Loans, as First Payments Come Due Degrees of Debt: New Data Gives Clearer Picture of Student Debt One upside of ECMC’s ownership is that the federal government requires the company to engage in financial literacy efforts. College Abacus helps fulfill that mission and thus does not need to earn any revenue. The company also created a tool, called Pell Abacus, specifically for low-income families.


Hamilton College in Clinton, N.Y., is one of several schools that have made it easier for families to compare many colleges at once. Credit Nathaniel Brooks for The New York Times Colleges also worry about College Abacus’s accuracy. It works by gathering the questions that each calculator asks, sometimes combining similar ones from different schools, and then putting them all in one place, though you can compare only three colleges at a time on its site. Then, it takes the answers to all the questions, puts them into the three calculators, collects the results and displays all of the estimates on one page. And they are indeed estimates; applicants do not get actual offers until after they have applied and been accepted.


Continue reading the main story Advertisement

Continue reading the main story Abigail Seldin, co-founder of College Abacus, has repeatedly urged financial aid officials to call her with their concerns and allow her to test the results. Hamilton decided to take her up on the challenge, and it did find one significant problem in the way the company had rephrased a question about the net value of any business owned by an applicant’s parents. Ms. Seldin said the company fixed the problem within 24 hours.

Your Money A column on anything and everything that hits you in the wallet. How Should You Manage Your Money? And Keep It Short Think Seriously About Spending for Play How to Help in a Global Refugee Crisis How Much Car Do You Buy to Keep Your Teenager Safe? For Children, Dumbed-Down Phones May Be Smartest Option See More »

Cameron Feist, Hamilton’s director of financial aid, said that one of his top staff members spent about 15 hours testing College Abacus before the school decided to stop blocking access to its calculator for a yearlong trial period. Why so much time, given that College Abacus is just one college search site among many and that Mr. Feist’s employees are quite busy? “We don’t ever want there to be barriers in front of students who are considering Hamilton,” he said.

So why won’t Harvard, Caltech or Princeton reconsider? If only we knew. Harvard did not comment at all. At Caltech — which is in the business of producing graduates who come up with elegant ways to use software — Kathy Svitil, a spokeswoman, said that the decision maker there was too busy to talk to me. I asked one question via email and did not get a response.


Cameron Feist, director of financial aid at Hamilton College, which has stopped blocking access to College Abacus’s calculator for a yearlong trial period. Credit Nathaniel Brooks for The New York Times At Princeton, a spokeswoman, Min Pullan, said that it was not possible to find anyone to speak with me and emailed the following statement: “Princeton University has its own financial aid calculator, which is available to the public and is more accurate in presenting cost and aid calculations for prospective students. Therefore, we do not see the need for an external tool.”

I asked her to explain how College Abacus’s efforts would be less accurate and expressed wonder at the notion that the desire to compare multiple schools at once would not qualify as a “need.” She responded by saying that the university had nothing further to add.

Continue reading the main story RECENT COMMENTS

Look Ahead 4 hours ago Why not use the College Scorecard produced by the Dept of Education? The data comes from federal financial aid databases and tells you total... NB 1 day ago While it is frustrating that some colleges are eliminating a resource that could make the already cumbersome college application process... Frank 1 day ago Lack of transparency is the m.o. of these universities...for them, not for you. There is no other business in which you must reveal your... SEE ALL COMMENTS WRITE A COMMENT So what’s really going on here? One strong hint comes from a letter that Ms. Seldin received from a dean of financial aid. He wrote to her after she sent a mass note last year urging the schools that were blocking her tool to reconsider. She declined to identify him, as she still hopes to win him and others over.

“We are experiencing record student demand, engage families early in financial aid discussions and are meeting our goals,” the dean told her. “Why you think I should open myself up to a purely financial comparison when we are so much more than that, I have no idea. It is probably because you have not sat where I sit. So, kindly cease communication with me.”

Continue reading the main story INTERACTIVE GRAPHIC Student Loan Calculator A guide to student loans at various universities, and what it takes after graduation to repay that debt.

OPEN INTERACTIVE GRAPHIC I have no doubt that colleges, especially those that do not have endowments big enough to meet the full financial needs of each accepted student, are worried about the consequences of “direct financial comparisons.” But to deliberately throw up roadblocks that prevent easy comparisons is to turn up an institution’s collective nose at anyone with even the mildest pecuniary concerns.

Many of these schools would much prefer that prospective students spend far more time on their individual websites and use each of their calculators one by one. There, the colleges can surround the results with sunny explainers and Instagram-worthy pictures. They are selling an expensive product, after all, and have strict goals to meet for each class. They are increasingly focused on numbers, carefully calibrating their aid offers to make sure that the average amount paid by members of the freshman class hits a specific financial target. (Even if the schools are “so much more than that.”)

CONTINUE READING THE MAIN STORY 65 COMMENTS But that is no excuse for standing in the way of making the process easier for families. If the schools worry that students will abandon their research based on an unfriendly result from College Abacus’s calculator, they are probably selling most families short. Given the magnitude of the financial decision, complete with teary-eyed teenagers who set their hearts on an expensive dream school, of course the families will approach the schools directly for more information. Often, they’ll come in search of a different, better financial answer.

Moreover, schools that stand in the way of making data easier to use are failing to recognize families’ desperation for numbers that can help them make comparisons. If you want to know how much your child might learn, how much happier they might be, what kind of relationships they might forge, well, good luck. Maybe it’s impossible to get good data to answer those questions. Or perhaps most colleges simply aren’t tracking or publicizing such things, with few exceptions.

The results of the net price calculators, however, are there for all to see, if only because the federal government forced the schools’ hands. And those schools that deliberately make it harder for families to compare their net prices are sending their own telling signal to the marketplace of applicants.

Twitter: @ronlieber

Make the most of your money. Every Monday get articles about retirement, saving for college, investing, new online financial services and much more. Sign up for the Your Money newsletter here.

A version of this article appears in print on January 16, 2016, on page B1 of the New York edition with the headline: Concealing the Calculus of Higher Education. Order Reprints| Today's Paper|Subscribe


Film Shows Clinton Aide’s Own Struggle With Anthony Weiner...

Supreme Court to Hear Challenge to Obama Immigration Actions

Op-Ed Columnist: Time for a Republican Conspiracy!

East Coast Snowstorm Is Expected to Hit This Weekend

Hillary Clinton Gets Set for a Long Slog Against Bernie Sanders

Feature: How Rachel Bloom Makes ’Em Laugh

The Big Search to Find Out Where Dogs Come From

Op-Ed Contributor: Can Iran Change?

T.M.Q. — Tuesday Morning Quarterback: Why Green Bay...

‘Dark Money,’ by Jane Mayer View More Trending Stories »What's Next Loading... Go to Home Page » SITE INDEX THE NEW YORK TIMES

Site Index Navigation NEWS

World U.S. Politics N.Y. Business Tech Science Health Sports Education Obituaries Today's Paper Corrections OPINION

Today's Opinion Op-Ed Columnists Editorials Contributing Writers Op-Ed Contributors Opinionator Letters Sunday Review Taking Note Room for Debate Public Editor Video: Opinion ARTS

Today's Arts Art & Design ArtsBeat Books Dance Movies Music N.Y.C. Events Guide Television Theater Video Games Video: Arts LIVING

Automobiles Crossword Food Education Fashion & Style Health Jobs Magazine N.Y.C. Events Guide Real Estate T Magazine Travel Weddings & Celebrations LISTINGS & MORE

Classifieds Tools & Services Times Topics Public Editor N.Y.C. Events Guide Blogs Multimedia Photography Video NYT Store Times Journeys Subscribe Manage My Account SUBSCRIBE

Times Insider Home Delivery Digital Subscriptions NYT Opinion Crossword Email Newsletters Alerts Gift Subscriptions Corporate Subscriptions Education Rate Mobile Applications Replica Edition International New York Times Site Information Navigation © 2016 The New York Times Company HomeSearchAccessibility concerns? Email us at We would love to hear from you.Contact UsWork With UsAdvertiseYour Ad ChoicesPrivacyTerms of ServiceTerms of SaleSite Information Navigation Site MapHelpSite FeedbackSubscriptions Go to the next story