COST OF ATTENDANCE

COST OF COST OF ATTENDANCEATTENDANCE

ALSO KNOWN ASALSO KNOWN AS

THE BUDGETTHE BUDGET

Presented by Vicki Mattocks, FA Director, Presented by Vicki Mattocks, FA Director,

Missouri State UniversityMissouri State University

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AGENDAAGENDA IDENTIFY AND REVIEW CORE COMPONENTSIDENTIFY AND REVIEW CORE COMPONENTS

REVIEW ADDITIONAL ALLOWED COMPONENTSREVIEW ADDITIONAL ALLOWED COMPONENTS

COA RESTRICTIONSCOA RESTRICTIONS

DETERMINE WHEN RECALCULATION IS REQUIREDDETERMINE WHEN RECALCULATION IS REQUIRED

PRINCIPLES FOR BUDGET CONSTRUCTIONPRINCIPLES FOR BUDGET CONSTRUCTION

HOW PROFESSIONAL JUDGEMENT APPLIESHOW PROFESSIONAL JUDGEMENT APPLIES

A CONCLUSIONA CONCLUSION

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What is the Cost of Attendance?What is the Cost of Attendance?

The total, average amount of money it will The total, average amount of money it will reasonably cost a student to attend a reasonably cost a student to attend a particular institution during an academic year. particular institution during an academic year.

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BACK TO BASICSBACK TO BASICS

Why is it important?Why is it important?The COA is the foundation of financial aid awards; COA The COA is the foundation of financial aid awards; COA combined with EFC determine the parameters of financial need.combined with EFC determine the parameters of financial need.

**COA – EFC = NEEDCOA – EFC = NEED** General principle for awarding financial aid:General principle for awarding financial aid:

Need based aid and other resources cannot exceed the difference Need based aid and other resources cannot exceed the difference between COA and EFCbetween COA and EFC

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GENERAL BUDGET CONCEPTSGENERAL BUDGET CONCEPTS

The Dept. of Ed may not regulate the COAThe Dept. of Ed may not regulate the COA

Within each component, FA administrators determine the Within each component, FA administrators determine the amount of the allowance.amount of the allowance.

Once established, the costs must be applied consistently.Once established, the costs must be applied consistently.

If exceptions permitted, documentation required.If exceptions permitted, documentation required.

COA includes only the student’s costs.COA includes only the student’s costs.

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GENERAL BUDGET CONCEPTSGENERAL BUDGET CONCEPTS

Pell Grant COA – Pell Grant COA – alwaysalways based on full time based on full time enrollment.enrollment.

Other Title IV Aid – typically based on full Other Title IV Aid – typically based on full time enrollment, but are adjusted time enrollment, but are adjusted appropriately.appropriately.

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BASIC COA COMPONENTSBASIC COA COMPONENTS

Apply to all Title IV programsApply to all Title IV programs Three basic componentsThree basic components

√ Tuition and feesTuition and fees

√ Books, supplies, transportation, and miscellaneous Books, supplies, transportation, and miscellaneous personal expenses, including a reasonable personal expenses, including a reasonable allowance for the rental or purchase of personal allowance for the rental or purchase of personal computercomputer

√ Room and boardRoom and board

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TuitionTuition

May use actual or average tuition chargesMay use actual or average tuition charges

May establish separate averages for separate May establish separate averages for separate categoriescategories

If one overall average tuition charge is used, it must If one overall average tuition charge is used, it must be a weighted averagebe a weighted average

ExceptionException: Tuition not assessed, not included in : Tuition not assessed, not included in COA.COA.

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Example: Weighted Average Example: Weighted Average Tuition ChargeTuition Charge

Tuition: in-state = $2,000; out-of-state = $4,000Tuition: in-state = $2,000; out-of-state = $4,000 9,000 in-state students; 1,000 out-of state students9,000 in-state students; 1,000 out-of state students Weighted average:Weighted average:

Weighted average tuition charge for COA = $2,200Weighted average tuition charge for COA = $2,200

$2,000 x 9,000 = $18,000,000 + $4,000 x 1,000 = 4,000,000

$22,000,000

$22,000,000 ÷ 10,000 = $2,200

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Include in COA ifInclude in COA if::

Necessary for student’s program of study; or Necessary for student’s program of study; or

Required of all students or a broad category of Required of all students or a broad category of studentsstudents

Do not include in COA if:Do not include in COA if:

Paid to third partiesPaid to third parties

FeesFees

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The tuition and fees component The tuition and fees component maymay include the include the cost for rental or purchase of equipment, materials, cost for rental or purchase of equipment, materials, and supplies if:and supplies if:

The item is required for all students in the same program The item is required for all students in the same program of studyof study

Mandatory expenses are associated with academic Mandatory expenses are associated with academic programprogram

Equipment, Materials, and Supply Equipment, Materials, and Supply ChargesCharges

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Books, Supplies, Transportation, Books, Supplies, Transportation, Miscellaneous Personal ExpensesMiscellaneous Personal Expenses

May establish single allowance for books and May establish single allowance for books and supplies or allowances for different categories supplies or allowances for different categories

Transportation allowance must be reasonableTransportation allowance must be reasonable

Miscellaneous personal allowance should enable a Miscellaneous personal allowance should enable a reasonable standard of living reasonable standard of living

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Personal Computer CostPersonal Computer Cost

Reasonable costs for rental or purchase of Reasonable costs for rental or purchase of computer equipment allowed if student is enrolled computer equipment allowed if student is enrolled at least half timeat least half time

√ Computer need not be required by student’s programComputer need not be required by student’s program

√ May be purchased in the summer for use in the May be purchased in the summer for use in the following fall enrollment periodfollowing fall enrollment period

√ School determines conditions and documentation for School determines conditions and documentation for adding costs to budgetadding costs to budget

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Room and BoardRoom and Board

Three categoriesThree categories√ Students without dependents living at home with parent(s)Students without dependents living at home with parent(s)√ Students without dependents living in campus housingStudents without dependents living in campus housing√ All other studentsAll other students

Only the student’s expenses can be included (i.e., cannot Only the student’s expenses can be included (i.e., cannot include expenses of other household members)include expenses of other household members)

If room and board is supplied at no charge, that component of If room and board is supplied at no charge, that component of the COA would be zerothe COA would be zero

If room and board is charged and the charge is then waived, If room and board is charged and the charge is then waived, the value of the room and board is included in the COAthe value of the room and board is included in the COA

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Additional AllowancesAdditional Allowances Additional allowances for:Additional allowances for:

√ Dependent care expensesDependent care expenses

√ Disability-related expensesDisability-related expenses

√ Cooperative education program expensesCooperative education program expenses

√ Study abroad expensesStudy abroad expenses

√ First professional credential cost, at the option of First professional credential cost, at the option of the schoolthe school

√ Educational loan feesEducational loan fees

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Dependent Care AllowanceDependent Care Allowance

Dependent may be student’s child or other personDependent may be student’s child or other person

May be actual amount determined on a case-by-case May be actual amount determined on a case-by-case basis or an average amountbasis or an average amount

May not exceed reasonable cost in community for the May not exceed reasonable cost in community for the kind of care providedkind of care provided

Includes, but is not limited to, class time, study time, Includes, but is not limited to, class time, study time, field work, internships, and commuting timefield work, internships, and commuting time

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DISABILITY RELATED DISABILITY RELATED EXPENSESEXPENSES

Student’s disability-related expenses that are Student’s disability-related expenses that are reasonably incurred and not provided by reasonably incurred and not provided by another agency or program another agency or program

Must be determined and documented on an Must be determined and documented on an individual basisindividual basis

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Cooperative education program Cooperative education program expensesexpenses

Cooperative education program:Cooperative education program:

A credit bearing academic program that combines A credit bearing academic program that combines professional work experience in a student’s field of professional work experience in a student’s field of

study with academic research and course work.study with academic research and course work.

COA may include an allowance for reasonable costs COA may include an allowance for reasonable costs associated with such employment.associated with such employment.

Expenses include: transportation, meals away from Expenses include: transportation, meals away from home, and any other costs incurred as a result of the home, and any other costs incurred as a result of the coop program.coop program.

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STUDY ABROAD ALLOWANCESTUDY ABROAD ALLOWANCE

COA may include reasonable costs for a student COA may include reasonable costs for a student enrolled in a Study Abroad programenrolled in a Study Abroad program

• Program must be approved for credit by the home Program must be approved for credit by the home institution.institution.

• Costs are determined by the institution at which a Costs are determined by the institution at which a student is enrolled.student is enrolled.

• Home institution must accept coursework for Home institution must accept coursework for creditcredit

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COST OF PROFESSIONAL COST OF PROFESSIONAL CREDENTIALCREDENTIAL

Effective July 1, 2006, the COA may include Effective July 1, 2006, the COA may include the one-time cost of obtaining the first the one-time cost of obtaining the first professional credentials for a student in a field professional credentials for a student in a field requiring professional licensure or certificationrequiring professional licensure or certification

(HERA)(HERA)

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EDUCATIONAL LOAN FEESEDUCATIONAL LOAN FEES

Must beMust be included in COA if student borrows a FFEL or included in COA if student borrows a FFEL or Direct LoanDirect Loan

May beMay be included for all other types of educational loans included for all other types of educational loans May use actual or average fee amount for FFEL or Direct May use actual or average fee amount for FFEL or Direct

Loan based on:Loan based on: Type of loan for different student categoriesType of loan for different student categories Type of loan borrowedType of loan borrowed On a case-by-case basisOn a case-by-case basis

If loan declined or lower amount requested, must ensure an If loan declined or lower amount requested, must ensure an over award is not maskedover award is not masked

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COST OF ATTENDANCE COST OF ATTENDANCE RESTRICTIONSRESTRICTIONS

Costs are more restrictive for students who Costs are more restrictive for students who are:are:

Enrolled in correspondence programsEnrolled in correspondence programs

Enrolled less than half timeEnrolled less than half time

IncarceratedIncarcerated

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COA RESTRICTIONS:COA RESTRICTIONS:LESS THAN HALF TIME ENROLLMENTLESS THAN HALF TIME ENROLLMENT

COA components limited to:COA components limited to: Tuition and feesTuition and fees Books, supplies, & transportation costsBooks, supplies, & transportation costs Dependent care expensesDependent care expenses A/O July 1, 2006, a room and board allowance for A/O July 1, 2006, a room and board allowance for

not more than three semesters or the equivalent, of not more than three semesters or the equivalent, of which not more than two semesters may be which not more than two semesters may be consecutiveconsecutive

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COA RESTRICTIONS:COA RESTRICTIONS:CORRESPONDENCE STUDYCORRESPONDENCE STUDY

A correspondence course is one for which a A correspondence course is one for which a school provides instructional materials and school provides instructional materials and exams for students who don’t physically attend exams for students who don’t physically attend classes at the school.classes at the school.

COA components limited to:COA components limited to: Tuition and feesTuition and fees Books and suppliesBooks and supplies Transportation and room and board if incurred Transportation and room and board if incurred

specifically for required residential trainingspecifically for required residential training

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COA RESTRICTIONS:COA RESTRICTIONS:INCARCERATED STUDENTSINCARCERATED STUDENTS

COA components limited to:COA components limited to:

Tuition and feesTuition and fees

Books and supplies, if requiredBooks and supplies, if required

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RECALCULATION OF THE COARECALCULATION OF THE COA

A. FEDERAL PELL GRANT PROGRAMA. FEDERAL PELL GRANT PROGRAM

Recalculation of Federal Pell Grant COA is Recalculation of Federal Pell Grant COA is not requirednot required for cost changes unless for cost changes unless school’s policy is to recalculate for a change school’s policy is to recalculate for a change in costsin costs

When recalculation of Federal Pell Grant When recalculation of Federal Pell Grant award is required, any changes to Federal award is required, any changes to Federal Pell Grant COA must be taken into accountPell Grant COA must be taken into account

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BB. . CAMPUS-BASED PROGRAMSCAMPUS-BASED PROGRAMS

COA may be recalculated as part of COA may be recalculated as part of over award resolutionover award resolution

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C.C. FFEL/DIRECT LOAN PROGRAMS FFEL/DIRECT LOAN PROGRAMS

If the student temporarily ceases at least half-time If the student temporarily ceases at least half-time enrollment before loan proceeds delivered or enrollment before loan proceeds delivered or disbursed, recalculation is required to determine disbursed, recalculation is required to determine whether the student continues to qualify for the whether the student continues to qualify for the entire loanentire loan

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PRINCIPLES FOR BUDGET PRINCIPLES FOR BUDGET CONSTRUCTIONCONSTRUCTION

RealisticRealistic

AdequateAdequate

ModerateModerate

DocumentedDocumented

Non-manipulativeNon-manipulative

Made available to studentsMade available to students

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Setting CostsSetting Costs

Fixed InstitutionalFixed Institutional Non-institutional CostsNon-institutional CostsCostsCosts TuitionTuition . Books & Supplies. Books & Supplies FeesFees . Transportation. Transportation Institutional roomInstitutional room . Personal Expenses. Personal Expenses and boardand board . Off Camp. Housing. Off Camp. Housing

. Utilities. Utilities

. Food. Food

. Dependent Care. Dependent Care

. Medical. Medical

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COLLECTING DATA TO SET COLLECTING DATA TO SET COSTSCOSTS

Student budget questionnairesStudent budget questionnaires Student expenditure questionnairesStudent expenditure questionnaires Institutional PublicationsInstitutional Publications Community SourcesCommunity Sources Local, state, and federal IndexesLocal, state, and federal Indexes

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STUDENT BUDGET SOURCESSTUDENT BUDGET SOURCES

Publishers WeeklyPublishers Weekly http://www.publishersweekly.com/http://www.publishersweekly.com/

U.S. Department of LaborU.S. Department of Labor Bureau of Labor StatisticsBureau of Labor Statistics http://stats.bls.govhttp://stats.bls.gov

The College Board’s The College Board’s ““Trends in College Pricing 2005”Trends in College Pricing 2005” http://www.collegeboard.com/trendshttp://www.collegeboard.com/trends

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Professional Judgment and the COAProfessional Judgment and the COA

The law statesThe law states thatthat

““nothing…shall be interpreted as limiting the nothing…shall be interpreted as limiting the authority of the financial aid administrator, authority of the financial aid administrator, on the basis of adequate documentation, to on the basis of adequate documentation, to make adjustments on a case-by-case basis to make adjustments on a case-by-case basis to the cost of attendance…to allow for treatment the cost of attendance…to allow for treatment of an individual eligible applicant with of an individual eligible applicant with special circumstances.”special circumstances.”

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Professional Judgment:Professional Judgment:

Allows for flexibility and exceptions to normal Allows for flexibility and exceptions to normal COA rulesCOA rules

Must be documented on a case-by-case basisMust be documented on a case-by-case basis

Examples: Examples: √ use of actual costs vs. standard or averageuse of actual costs vs. standard or average√ exceptional medical/health care expensesexceptional medical/health care expenses√ unusual child care expensesunusual child care expenses

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Professional Judgment RestrictionsProfessional Judgment Restrictions

Post enrollment costs cannot be added, except for cost of first Post enrollment costs cannot be added, except for cost of first professional credential, as discussed.professional credential, as discussed.

New categories of cost components may not be created.New categories of cost components may not be created. Except for child care, additional expense must be incurred by Except for child care, additional expense must be incurred by

student him/herself during enrollment period.student him/herself during enrollment period. Disability related expenses can be added to less-than-half-time Disability related expenses can be added to less-than-half-time

budget.budget.

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In conclusion, student budgets must be In conclusion, student budgets must be designed to:designed to:

√ Meet statutory COA requirementsMeet statutory COA requirements√ Realistically reflect a student’s educational expensesRealistically reflect a student’s educational expenses√ Be documented and maintained by the institutionBe documented and maintained by the institution√ Be included in a schools policies and procedures manual.Be included in a schools policies and procedures manual.

COST OF ATTENDANCECOST OF ATTENDANCE

Documents

COST OF ATTENDANCE