National Association of Student Financial Aid Administrators Presents… © NASFAA 2006 Cost of Attendance Module 5

Slide © NASFAA 2006 Basic Need Equation Cost of Attendance –Expected Family Contribution = Need

Slide © NASFAA 2006 Basic Cost of Attendance 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

Slide © NASFAA 2006 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

Slide © NASFAA 2006 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

Slide © NASFAA 2006 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 © NASFAA 2006 Include in COA if: –Necessary for student’s program of study; or –Required of all students or a broad category of students Fees

Slide © NASFAA 2006 Rental or purchase cost allowed if the item is required for all students in the same program of study Equipment costs allowed for students receiving instruction through telecommunications technology Equipment, Materials, and Supply Charges

Slide © NASFAA 2006 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

Slide © NASFAA 2006 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

Slide © NASFAA 2006 Room and Board Three categories –Students without dependents living at home with parent(s) –Students without dependents living in institutionally-owned or operated housing –All other students Only the student’s expenses can be included (i.e., cannot include expenses of other household members)

Slide © NASFAA 2006 Room and Board Subcategories allowed 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

Slide © NASFAA 2006 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 class time, study time, field work, internships, and commuting time

Slide © NASFAA 2006 Disability-Related Expense Allowance 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

Slide © NASFAA 2006 Cooperative Education and Study Abroad Allowances Cooperative education program expenses –Costs associated with work experience Study abroad –Costs associated with study abroad –Home institution must accept coursework for credit

Slide © NASFAA 2006 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

Slide © NASFAA 2006 Educational Loan Fees Must be included in COA if student borrows a FFEL or Direct Loan May use actual or average fee amount for FFEL or Direct Loan May use actual fees for all other types of educational loans If loan declined or lower amount requested, must ensure an overaward is not masked

Slide © NASFAA 2006 Cost of Attendance Restrictions Costs are more restrictive for students who are: –Enrolled less than half time –Enrolled in correspondence programs –Incarcerated

Slide © NASFAA 2006 COA Restrictions Less-than-half-time students –Tuition and fees –Books, supplies, and transportation costs –Effective July 1, 2006, room and board costs for not more than three semesters or the equivalent, of which not more than two semesters may be consecutive –Dependent care expenses

Slide © NASFAA 2006 COA Restrictions Correspondence study –Tuition and fees –Books and supplies, if required –Transportation, room, and board, if incurred specifically for required residential training

Slide © NASFAA 2006 COA Restrictions Incarcerated students –Tuition and fees –Books and supplies, if required

Slide © NASFAA 2006 COA Professional Judgment Flexibility in developing budget for student with documented exceptional circumstances Cannot include post-enrollment costs (except for cost of first professional credential) Cannot create new COA components

Slide © NASFAA 2006 Non-Title IV Aid and COA Effective July 1, 2006: –Investment value of prepaid tuition plans is considered an asset, although not considered an asset of the dependent student –State-provided non-Title IV aid designated to cover a specific COA component may be excluded from estimated financial assistance if it is also excluded from the COA, and vice versa

Slide © NASFAA 2006 Recalculation of COA: 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

Slide © NASFAA 2006 Recalculation of COA: Campus-Based Programs COA may be recalculated as part of overaward resolution

Slide © NASFAA 2006 Recalculation of COA: FFEL and 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

Slide © NASFAA 2006 Purposes and Principles of Student Budget Construction Realistic Adequate Moderate Documented Non-manipulative

Slide © NASFAA 2006 Student Expenses Fixed Institutional Costs Tuition Fees Institutional room and board Noninstitutional Costs Books and supplies Transportation Personal expenses Off-campus housing Utilities Food Dependent care Medical

Slide © NASFAA 2006 Student Budget Sources Primary Sources Personal interviews Student budget questionnaires Student expenditure diaries Secondary Sources Institutional publications Institutional faculty and staff Community sources Local indices Regional indices State indices Federal indices

Slide © NASFAA 2006 Publishers Weekly U.S. Department of Labor Bureau of Labor Statistics The College Board’s “Trends in College Pricing 2005” Student Budget Sources

Slide © NASFAA 2006