National Association of Student Financial Aid Administrators Presents … © NASFAA 2011 Cost of Attendance Module 5

Slide 5-2 © NASFAA 2011 Basic Need Equation Cost of attendance (COA) –Expected family contribution (EFC) = Need

Slide 5-3 © NASFAA 2011 Purposes of Student Budget Construction Develop realistic budgets Accurate cost projections Equity Not intended to be an enrollment management tool Budgets for different categories

Slide 5-4 © NASFAA 2011 Setting Costs Institutional costs –Fixed and set by school (e.g., tuition and fees) Noninstitutional costs –Not set by school (e.g., off-campus room and board) –Reflect local market conditions

Slide 5-5 © NASFAA 2011 Student Budget Sources Primary sources –Sensitive to specific student circumstances and provide data on actual student expenses –Example: student surveys Secondary sources –Verify student data and final budget figures –Examples: published sources, faculty/staff, community sources, and various indices

Slide 5-6 © NASFAA 2011 COA Components and Allowances Set by statute Apply to all Title IV programs Three basic components Six additional allowances, as applicable May use average or actual costs

Slide 5-7 © NASFAA 2011 COA General Concepts Federal Pell Grant Program –Always use full-time, full-year COA All other Title IV programs –Typically based on full-time, full-year COA –Adjusted for summer as needed –Adjusted for less-than-full-time enrollment and less-than-full-year attendance

Slide 5-8 © NASFAA 2011 COA General Concepts For simultaneous enrollment at multiple schools under consortium agreements, including study abroad, values of like budget items must be: Combined into a single amount for each cost component to prevent double counting Applied on full-time, full academic year basis when awarding Title IV aid

Slide 5-9 © NASFAA 2011 Basic COA Component Allowances Tuition and fees Amounts normally assessed students carrying same academic workload, as determined by institution May include costs for rental or purchase of equipment, materials, or supplies required of all students in same program of study

Slide 5-10 © NASFAA 2011 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

Slide 5-11 © NASFAA 2011 Basic COA Component Allowances Books and supplies costs Transportation costs Miscellaneous personal expenses Personal computer rental or purchase

Slide 5-12 © NASFAA 2011 Basic COA Component Allowances Room and Board Students without dependents living at home with parent(s) Students without dependents living in institutionally-owned or operated housing Students living in on-base military housing or in off-base housing for which a military basic housing allowance is provided All other students

Slide 5-13 © NASFAA 2011 Additional COA Allowances Dependent care Disability-related Cooperative education Study abroad First professional credential Educational loan fees

Slide 5-14 © NASFAA 2011 COA Restrictions Certain cost components are excluded for students who are: Enrolled less than half time Enrolled in correspondence programs Incarcerated

Slide 5-15 © NASFAA 2011 Rules differ among Title IV programs: Federal Pell Grant, IASG, and TEACH Grant programs Campus-based programs Direct Loan Program COA Recalculations

Slide 5-16 © NASFAA 2011 Non-Title IV Aid and COA Prepaid tuition plans have no effect on COA State-provided non-Title IV aid designated to cover a specific COA component may be excluded from estimated financial assistance (EFA), if also excluded from COA, and vice versa

Slide 5-17 © NASFAA 2011