1. Constructing Cost of Attendance (COA) Budgets A Roundtable Discussion Catherine Demchak, Carnegie Mellon University – Heinz College Judy Schneider, Financial Aid Services

2. Talking points… What is a Cost of Attendance (COA) Budget? What should be included? Where do I start? How many different COAs are needed? How often do I need to update the COA?

3. What is a Cost of Attendance (COA) Budget? The cost of attendance (COA) is the foundation for establishing a student’s financial need. It sets a limit on the total aid that a student may receive for purposes of… Pell Grant Calculations TEACH Grant Campus-Based Programs Direct Subsidized and Unsubsidized Loans Direct PLUS/Graduate PLUS Loans The costs that you establish for your students will be used to calculate their Federal Student Aid award amounts and package their aid.

4. The COA should include… Direct Costs, (costs paid to the university): Tuition Fees Health Insurance Indirect Costs, (costs associated with attending school): Books and Supplies (laptops, cameras, notebooks, software, etc…) Room and Board Transportation Personal Expenses Loan fees (Some colleges differentiate costs for state residents vs. nonresidents.) What should be included?

5. On a case-by-case basis you may want to adjust the COA for expense such as, Dependent Care (child, spouse and/or elder care) Study Abroad Expenses Disability Expenses Other Education-Related Expenses Always be sure to collect documentation for any additional expense added to your established COA. What should be included?

6. Where do I start? Review COAs of schools in your area Contact their financial aid office to inquire about their methods for determining living expenses Use cost of living estimators CollegeBoardCollegeBoard living expense costs by region Talk to your program directors Estimates of books and supplies Survey your students Housing and miscellaneous costs

7. Where do I start? College Board http://professionals.collegeboard.com/higher- ed/financial-aid/living-expense

8. Where do I start? College Board http://professionals.collegeboard.com/higher-ed/financial- aid/living-expense The base budgets for 2014-15 are: Moderate (Prevailing) Budgets 12 Month$23,010 9 Month$17,260 Low Budgets 12 Month$15,420 9 Month$11,560 The approximate breakdown of the living expense component is as follows: Housing: 55% Transportation: 17% Miscellaneous: 28% The housing allowance breaks down between housing (including utilities) and food at approximately 75 percent and 25 percent.

9. Where do I start? College Board http://professional s.collegeboard.co m/higher- ed/financial- aid/living-expense Nine-Month Academic Year 2014-15 Moderate 9- Month Budget Low 9- Month Budget United States$ 17,260$ 11,560 Northeast: Boston–Cambridge–Quincy, MA–NH 18,29612,254 New York–Northern New Jersey–Long Island, NY–NJ–PA 18,98612,716 Philadelphia–Camden– Wilmington, PA–NJ–DE–MD 18,29612,254 Pittsburgh, PA17,26011,560

10. Where do I start? Cost of Living Calculator http://www.bestplaces.net/col/ Comparison: Cost of Living Wilkes-Barre, PA to Philadelphia, PA COSTOFLIVINGWilkes-BarrePhiladelphiaUnited States Overall8096100 Grocery104.2115.9100 Health97103100 Housing3061100 Utilities111127100 Transportation102106100 Miscellaneous104116100

11. Where do I start? Cost of Living Comparison Highlights Philadelphia is 18.6% more expensive than Wilkes-Barre Philadelphia, housing costs are 67.0% more than Wilkes-Barre, housing costs. Health related expenses are 6.0% more in Philadelphia. Component Philadelphia, PAWilkes-Barre PA (16.6% Less) Low Budget Moderate Budget Low BudgetModerate Budget Housing (55%) $ 6,740 $ 10,063 $ 5,621 $ 8,392 Transportation (17%) $ 2,083 $ 3,110 $ 1,737 $ 2,594 Miscellaneous (28%) $ 3,431 $ 5,123 $ 2,862 $ 4,273 Total Living Budget (100%) $ 12,254 $ 18,296 $ 10,220 $ 15,259

12. How many different COAs are needed? Student expenses will vary from student to student and actual costs may differ based on the program of study. Undergraduate Graduate On-Campus vs. Off-Campus Housing In-State vs. Out-of-State Program Specific Term Specific Enrollment Specific (Full-time vs. Part-time) Distance Programs

13. How many different COAs are needed? Cost of Attendance for a Distance Education Student The law prohibits you from making a distinction based on the mode of instruction when determining the cost of attendance for a student receiving all or part of the student’s instruction through distance education. However, you have the authority to use professional judgment to adjust the cost of attendance on a case-by-case basis to allow for special circumstances. For example, you may exclude transportation costs if you determine that such costs will not be incurred by a student. Such adjustments must be documented in the student’s file. (See “Professional Judgment” in the Application and Verification Guide.)* *Taken from the 2014-2015 Student Aid Handbook, Volume 3 — Calculating Awards & Packaging, Chapter 2.

14. You should review and adjust the cost of attendance each year to reflect changes in the cost of living and changes in tuition and fees. How often do I need to update the COA?

15. Questions?

16. Contacts Catherine Demchak cdemchak@andrew.cmu.edu Judy Schneider judytschneider@aol.com