Net Price & Aid Analysis Calculated Instantly
Headline Sticker Price
$85,000
Published total attendance
Institutional Grant
-$75,000
Need + merit endowment aid
True Net Price
$10,000
Actual family out-of-pocket/yr
IRS Scholarship Tax
$2,250
Unqualified room & board tax
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Undermatching Risk: High
Student has a 3.80 GPA and family income under $85k. Top-tier private schools offer generous need-based endowments, making them potentially cheaper than public schools. Self-selecting out based purely on the $85,000 sticker price is an acute undermatching error.
Sticker Price vs. Net Cost Horizon
Educational Pathway Cost Comparison (4-Year Total)
Option A: 4-Year Direct Enrollment
Direct admission to selected target institution
$40,000
4 years @ $10,000/yr net price after institutional endowments.
Option B: 2+2 Community College Transfer
2 yrs Community College + 2 yrs Target Inst.
$26,000
2 yrs CC ($3,000/yr) + 2 yrs target school ($10,000/yr). Saves $14,000 total.
IRS IRC §117 Scholarship Tax Trap Notice
Tuition, mandatory fees, and books are tax-exempt qualified education expenses. However, the $15,000 room & board stipend is treated as taxable unearned income for student tax returns (estimated 15% effective student/kiddie tax bracket), creating an unexpected $2,250 out-of-pocket tax bill.