COST OF ATTENDANCE

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COST OF ATTENDANCE

• ALSO KNOWN AS
• THE BUDGET
• Presented by Vicki Mattocks, FA Director,
• Missouri State University

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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 students 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
• Weighted 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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Fees

• Include in COA if
• Necessary for students 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 students
  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 students 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 students 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

• Students 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 students 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 RESTRICTIONSLESS 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 RESTRICTIONSCORRESPONDENCE STUDY

• A correspondence course is one for which a school
  provides instructional materials and exams for
  students who dont 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 RESTRICTIONSINCARCERATED 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 schools 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 Non-institutional Costs
• Costs
• Tuition . Books Supplies
• Fees . Transportation
• Institutional room . Personal Expenses
• and board . 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 Boards
• Trends in College Pricing 2005
• http//www.collegeboard.com/trends

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Professional Judgment and the COA

• The law states that
• nothingshall 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 attendanceto 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 students educational
  expenses
• Be documented and maintained by the institution
• Be included in a schools policies and procedures
  manual.