COST OF
ATTENDANCE
ALSO KNOWN AS
THE BUDGET
Presented by Vicki Mattocks, FA Director,
Missouri State University
AGENDA

IDENTIFY AND REVIEW CORE COMPONENTS

REVIEW ADDITIONAL ALLOWED COMPONENTS

COA RESTRICTIONS

DETERMINE WHEN RECALCULATION IS REQUIRED

PRINCIPLES FOR BUDGET CONSTRUCTION

HOW PROFESSIONAL JUDGEMENT APPLIES

A CONCLUSION
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What is the Cost of Attendance?
The total, average amount of money it will
reasonably cost a student to attend a
particular institution during an academic year.
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BACK TO BASICS

Why is it important?
The COA is the foundation of financial aid awards; COA
combined with EFC determine the parameters of financial
need.
*COA – EFC = NEED*

General principle for awarding financial
aid:
Need based aid and other resources cannot exceed the
difference between COA and EFC
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GENERAL BUDGET CONCEPTS

The Dept. of Ed may not regulate the COA

Within each component, FA administrators determine the
amount of the allowance.

Once established, the costs must be applied consistently.

If exceptions permitted, documentation required.

COA includes only the student’s costs.
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GENERAL BUDGET CONCEPTS
 Pell Grant COA – always based on full time
enrollment.
 Other Title IV Aid – typically based on full
time enrollment, but are adjusted
appropriately.
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BASIC COA COMPONENTS

Apply to all Title IV programs

Three basic components
√
Tuition and fees
√
Books, supplies, transportation, and miscellaneous
personal expenses, including a reasonable
allowance for the rental or purchase of personal
computer
√
Room and board
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Tuition
 May use actual or average tuition charges
 May establish separate averages for separate
categories
 If one overall average tuition charge is used, it must
be a weighted average
 Exception: Tuition not assessed, not included in
COA.
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Example: Weighted Average
Tuition Charge



Tuition: in-state = $2,000; out-of-state = $4,000
9,000 in-state students; 1,000 out-of state students
Weighted average:
+
$2,000
$4,000
x
x
9,000 =
1,000 =
$18,000,000
4,000,000
$22,000,000
$22,000,000 ÷ 10,000 =

$2,200
Weighted average tuition charge for COA = $2,200
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Fees
 Include in COA if:


Necessary for student’s program of study; or
Required of all students or a broad category of
students
 Do not include in COA if:

Paid to third parties
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Equipment, Materials, and Supply
Charges
 The tuition and fees component may include the
cost for rental or purchase of equipment, materials,
and supplies if:
 The item is required for all students in the same program
of study
 Mandatory expenses are associated with academic
program
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Books, Supplies, Transportation,
Miscellaneous Personal Expenses
 May establish single allowance for books and
supplies or allowances for different categories
 Transportation allowance must be reasonable
 Miscellaneous personal allowance should enable a
reasonable standard of living
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Personal Computer Cost
 Reasonable costs for rental or purchase of
computer equipment allowed if student is enrolled
at least half time
√ Computer need not be required by student’s program
√ May be purchased in the summer for use in the
following fall enrollment period
√ School determines conditions and documentation for
adding costs to budget
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Room and Board


Three categories
√ Students without dependents living at home with parent(s)
√ Students without dependents living in campus housing
√ All other students
Only the student’s expenses can be included (i.e., cannot
include expenses of other household members)

If room and board is supplied at no charge, that component of
the COA would be zero

If room and board is charged and the charge is then waived,
the value of the room and board is included in the COA
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Additional Allowances
 Additional allowances for:
√ Dependent care expenses
√ Disability-related expenses
√ Cooperative education program expenses
√ Study abroad expenses
√ First professional credential cost, at the option of
the school
√ Educational loan fees
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Dependent Care Allowance
 Dependent may be student’s child or other person
 May be actual amount determined on a case-by-case
basis or an average amount
 May not exceed reasonable cost in community for the
kind of care provided
 Includes, but is not limited to, class time, study time,
field work, internships, and commuting time
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DISABILITY RELATED
EXPENSES


Student’s disability-related expenses that are
reasonably incurred and not provided by
another agency or program
Must be determined and documented on an
individual basis
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Cooperative education program
expenses

Cooperative education program:
A credit bearing academic program that combines
professional work experience in a student’s field of
study with academic research and course work.

COA may include an allowance for reasonable costs
associated with such employment.

Expenses include: transportation, meals away from
home, and any other costs incurred as a result of the
coop program.
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STUDY ABROAD ALLOWANCE
 COA may include reasonable costs for a student
enrolled in a Study Abroad program
•
Program must be approved for credit by the home
institution.
•
Costs are determined by the institution at which a
student is enrolled.
•
Home institution must accept coursework for
credit
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COST OF PROFESSIONAL
CREDENTIAL

Effective July 1, 2006, the COA may include
the one-time cost of obtaining the first
professional credentials for a student in a field
requiring professional licensure or certification
(HERA)
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EDUCATIONAL LOAN FEES
 Must be included in COA if student borrows a FFEL or
Direct Loan
 May be included for all other types of educational loans
 May use actual or average fee amount for FFEL or Direct
Loan based on:

Type of loan for different student categories

Type of loan borrowed

On a case-by-case basis
 If loan declined or lower amount requested, must ensure an
over award is not masked
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COST OF ATTENDANCE
RESTRICTIONS

Costs are more restrictive for students who are:
Enrolled in correspondence programs
Enrolled less than half time
Incarcerated
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COA RESTRICTIONS:
LESS THAN HALF TIME ENROLLMENT

COA components limited to:
 Tuition and fees
 Books, supplies, & transportation costs
 Dependent care expenses
 A/O July 1, 2006, a room and board allowance for
not more than three semesters or the equivalent, of
which not more than two semesters may be
consecutive
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COA RESTRICTIONS:
CORRESPONDENCE STUDY
A correspondence course is one for which a
school provides instructional materials and
exams for students who don’t physically attend
classes at the school.
 COA components limited to:
 Tuition and fees
 Books and supplies
 Transportation and room and board if incurred
specifically for required residential training
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COA RESTRICTIONS:
INCARCERATED STUDENTS

COA components limited to:
Tuition and fees
Books and supplies, if required
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RECALCULATION OF THE COA
A. FEDERAL PELL GRANT PROGRAM
 Recalculation of Federal Pell Grant COA is
not required for cost changes unless
school’s policy is to recalculate for a change
in costs
 When recalculation of Federal Pell Grant
award is required, any changes to Federal
Pell Grant COA must be taken into account
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RECALCULATION OF THE COA
B. CAMPUS-BASED PROGRAMS
 COA may be recalculated as part of
over award resolution
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RECALCULATION OF THE COA
C. FFEL/DIRECT LOAN PROGRAMS
 If the student temporarily ceases at least half-time
enrollment before loan proceeds delivered or
disbursed, recalculation is required to determine
whether the student continues to qualify for the
entire loan
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PRINCIPLES FOR BUDGET
CONSTRUCTION

Realistic

Adequate

Moderate

Documented

Non-manipulative

Made available to students
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Setting Costs
Fixed Institutional
Costs
Costs
 Tuition
 Fees
 Institutional room
and board
Non-institutional
. Books & Supplies
. Transportation
. Personal Expenses
. Off Camp. Housing
. Utilities
. Food
. Dependent Care
. Medical
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COLLECTING DATA TO SET
COSTS





Student budget questionnaires
Student expenditure questionnaires
Institutional Publications
Community Sources
Local, state, and federal Indexes
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STUDENT BUDGET SOURCES








Publishers Weekly
http://www.publishersweekly.com/
U.S. Department of Labor
Bureau of Labor Statistics
http://stats.bls.gov
The College Board’s
“Trends in College Pricing 2005”
http://www.collegeboard.com/trends
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Professional Judgment and the COA
The law states that
“nothing…shall be interpreted as limiting the
authority of the financial aid administrator,
on the basis of adequate documentation, to
make adjustments on a case-by-case basis to
the cost of attendance…to allow for treatment
of an individual eligible applicant with
special circumstances.”
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Professional Judgment:
Allows for flexibility and exceptions to normal
COA rules
Must be documented on a case-by-case basis
Examples:
√ use of actual costs vs. standard or average
√ exceptional medical/health care expenses
√ unusual child care expenses
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Professional Judgment Restrictions




Post enrollment costs cannot be added, except for cost of first
professional credential, as discussed.
New categories of cost components may not be created.
Except for child care, additional expense must be incurred by
student him/herself during enrollment period.
Disability related expenses can be added to less-than-half-time
budget.
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COST OF ATTENDANCE
 In conclusion, student budgets must be
designed to:
√ Meet statutory COA requirements
√ Realistically reflect a student’s educational expenses
√ Be documented and maintained by the institution
√ Be included in a schools policies and procedures manual.
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