College Affordability and Transparency Lists

The U.S. Department of Education  posted the first of the annual "College Affordability and Transparency Lists," on June 30, 2011  as required by the Higher Education Opportunity Act (HEOA) of 2008.  The lists identify the institutions with the:

• The 5 percent of colleges with the highest published tuition and fees in 2009-2010.
• The 5 percent with the highest net price in 2008-2009.
• The 5 percent with the largest percentage increase in published tuition and fees from 2007-2008 to 2009-2010.
• The 5 percent with the largest percentage increase in net price from 2006-2007 to 2008-2009.
• The 10 percent with the lowest published tuition and fees in 2009-2010.
• The 10 percent with the lowest net price in 2008-2009.

The data used to create the 2011 tuition and fee lists  come from the Integrated Postsecondary Education Data System (IPEDS) 2008-09 through 2010-11 data collection years.  For 2011 net price lists , IPEDS data will be derived from 2007-08 through 2009-10 data years. 

The six lists are disaggregated into the nine different institution sectors as defined by sector (public, private not-for-profit, private for-profit) and by level (four-year, two-year, and less-than-two-year).  For each of the six lists there will be nine sector sub-lists so institutions can be compared to their peers.

Consequences of Being Listed
Every institution on lists  with the largest increases in tuition & fees  and net price ( over the three most recent academic years for which data are available]  will be require to report to the Secretary of Education:

(1)  A description of the areas in the institution’s budget with the greatest cost increases;

(2)  An explanation for the cost increases identified in (1); and

(3) A description of the steps the institution will take toward the goal of reducing costs in these areas.

Further Consequences 
Any institution which is on these  two lists  for 2 or more consecutive years must also submit a report describing its progress on the cost reduction steps described in (3) above. 

This information will be summarized in an annual report to Congress and published on the Department of Education’s College Navigator Website.

Exemptions from List
The new law exempts an institution from being included on lists #3 or #4 if the dollar amount of its increase in tuition & fees or in net price is less than $600 for the applicable three-year period.  This dollar amount will be adjusted every 3 years for inflation increases—beginning in 2014.

Limitations of the Data:

• The net cost numbers, for example, include only full-time, first-time students who received  grant or scholarship aid. 
• Location impacts operating costs - It costs more to run an institution in New York City than a less expensive area of the country so comparing schools in expensive parts of the country to less-expensive areas can be like comparing apples to oranges.
• The data look at different years for different variables because only published tuition and fees (and not aid figures) were available for 2009-10. 

Cost versus Value:

The Department of Education's  new College Affordability and Transparency Center website  highlights cost, but doesn't necessarily provide consumers with any context to assess the value of an institution. For example, an institution may cost more because it provides a higher teacher to student ratio or access to expensive, cutting-edge equipment. It is important for students and parents to keep in mind that data in the center are only one factor to consider when judging if an institution is a good value.  

• The Loyola Advantage
• Learn about New Orleans

 Effective Date
This is the first time the lists will be published by the Secretary.  The base year for calculation of the 3-year tuition and fees list is  the 2007-08 academic year. The base year for calculation of the 3-year net price list will be the 2006-07 academic year.

Thanks to NAICU and NASFAA for the majority of information on this page.

Additional Resources for Families:

We have additional resources for families throughout our web site for families who want to explore different financing options. 

• Preparing for College 
• Student Employment Options
• Responsible Borrowing
• Money Management Tips

Media Coverage:

• Naughty or Nice on College Price  -June 30. 2011
• With New Lists, Federal Government Moves to Help Consumers and Prod Colleges to Limit Price Increases - June 30, 2011
• What’s the Most Expensive College? The Least? Education Dept. Puts It All Online - June 30, 2011

Updated July 2, 2011