Cost of Attendance & Needs Analysis

1. Cost of Attendance & Needs Analysis Cathy Crawley Georgia College & State University

2. Cost of Attendance & Needs Analysis Basic Cost of Attendance Components • Apply to all Title IV programs • Three basic components • Tuition and Fees • Books, supplies, transportation, miscellaneous personal expenses, including a reasonable allowance for the rental or purchase of a personal computer • Room and Board

3. Cost of Attendance & Needs Analysis Additional Components • Dependent care • Disability-related expenses • Study Abroad expenses • Cooperative education program expenses • Loan Fees

4. Cost of Attendance & Needs Analysis General Concepts for Developing Budgets • Once costs are established, they must be applied consistently • If the school’s COA policy permits exceptions, the school must clearly document any exception made to its policy • The Federal Pell Grant Program COA always is based on full-time attendance for a full academic year

5. Cost of Attendance & Needs Analysis General Concepts (Continued) • For the other Title IV programs, COA calculations: • Typically are based on expenses for a full-time student for a full academic year • Appropriate adjustments should be made for students who are: • Enrolled less than full time, or • Are attending or receiving aid for less than a full academic year

6. Cost of Attendance & Needs Analysis Allowable Costs • Tuition and Fees: • May use actual or average tuition charges • May establish separate averages for separate categories • If one average tuition charge is used, it must be a weighted average

7. Cost of Attendance & Needs Analysis Example: Weighted Average Tuition Charge • In-state tuition = $2,000; out-of-state = $4,000 • 9,000 in-state students; 1,000 OOS students • Weighted Average $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

8. Cost of Attendance & Needs Analysis Books, Supplies, Transportation, Misc. • A school may establish a single allowance for books and supplies or allowances for different categories • Transportation allowances must be reasonable • Miscellaneous personal allowance should enable a reasonable standard of living • Reasonable costs for rental or purchase of computer equipment are allowed if: • The student is enrolled at least half time • The computer may be purchased in the summer for use during the following fall enrollment period • The school’s polices and procedures should include the conditions under which the allowance is permitted, the amount permitted, and what documentation is required • The computer does not have to be required by major

9. Cost of Attendance & Needs Analysis Allowable Costs (continued) • 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

10. Cost of Attendance & Needs Analysis Other Expenses • Dependent Care Allowance: • Dependent may be the student’s child or other person • May not exceed reasonable cost in the community for the kind of care provided • Includes class time, study time, field work, internships, and commuting time

11. Cost of Attendance & Needs Analysis Other Expenses (continued) • Disability-Related Expense Allowance • Student’s disability-related expenses not provided for by another agency or program • Must be determined and documented on an individual basis • Cooperative Education Expenses • Costs associated with employment such as commuting or transportation costs, meals away from home, and any other costs the student incurs as a result of the work experience

12. Cost of Attendance & Needs Analysis Other Expenses (continued) • Study Abroad • Reasonable costs associated with study abroad • The study abroad program need not be a requirement of the student’s degree program, but must be approved for credit by the institution • If under consortium or contractual agreement , the student’s home institution must accept for credit the coursework the student completes while enrolled in the study abroad program

13. Cost of Attendance & Needs Analysis Other Expenses (continued) • Education Loan Fees • Must be included in COA if the student has borrowed 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 (private) • If the loan is declined or lower amounts requested, must ensure no over-award

14. Cost of Attendance & Needs Analysis Cost of Attendance Components:Category Restrictions • Costs are more restrictive for students who are: • Enrolled less than half time • Enrolled in correspondence courses • Incarcerated • Less-than-half time students • Tuition and fees • Books, supplies, and transportation • Dependent care expenses • NO room and board

15. Cost of Attendance & Needs Analysis COA Restrictions (continued) • Correspondence study: • Tuition and fees • Books and supplies, if required • Room, board, and transportation if incurred specifically for required residential training • Incarcerated Students: • Tuition and fees • Books and supplies, if required

16. Cost of Attendance & Needs Analysis Cost of Attendance Professional Judgment • Flexibility in developing budgets for students with documented exceptional circumstances • Cannot include post-enrollment costs • Cannot create new COA components

17. Cost of Attendance & Needs Analysis Recalculation of COA: Federal Pell Grant • Recalculation of Pell COA is not required for cost changes unless the school’s policy is to recalculate for a change in costs • When recalculation of a Pell award is required, any changes to the Federal Pell Grant COA must be taken into account

18. Cost of Attendance & Needs Analysis Recalculation of COA and Need: Campus Based Programs • Review of COA is required to determine whether or not a student is over-awarded if the student receives an additional resource not included in the calculation of the student’s campus-based eligibility

19. Cost of Attendance & Needs Analysis Purpose and Principles of Student Budget Construction • Realistic • Adequate • Moderate • Non-manipulative • Documented

20. Cost of Attendance & Needs Analysis Financial Need Basic Need Equation: Cost of Attendance – Expected Family Contribution = Financial Need

21. Cost of Attendance & Needs Analysis Expected Family Contribution • All data used to calculate the EFC comes from the information the student and parent(s) provides on the FAFSA • The law provides three different formulas to calculate the EFC: one for dependent students, one for independent students without dependents other than a spouse, and one for independent students with dependents other than a spouse

22. Cost of Attendance & Needs Analysis Questions??? Further information available from Federal Student Aid Handbook 2009-2010 Federal Student Aid Handbook Volume 3 – Calculating Awards and Packaging Chapter 2 Cost of Attendance (Budget) Available online at www.ifap.ed.gov