Building Student Cost of Attendance: Issues and Ideas

1. Building Student Cost of Attendance:  Issues and Ideas Diane Fleming, Financial Aid Professional Emerita Sarah Soper, Director of Financial Aid, Indiana University East

2. AGENDA • Overview of Cost of Attendance Components • Professional Judgment – Could ‘ya? Would ‘ya? Should ‘ya? • Scenarios: What some schools do – and questions some schools have

3. COA: the 2nd component of FM to determine financial aid eligibility • COA: Determined by law (HEA, Sec. 472); not subject to regulation by ED • FAA must determine what is reasonable & appropriate • FM uses the COA – EFC to determine eligibility for various need-based financial aid programs • FAAs must create a systematic method of developing COAs • COA must be included in the institution’s Consumer Information publications

4. COA Components • Allowable costs in general • Same for all FSA programs • Based on enrollment status • Sum of the following: • Tuition & fees • Books & supplies • Transportation • Room & board • Miscellaneous/personal expenses • Loan fees

5. ADDITIONAL ALLOWABLE COA • Dependent care • Study abroad expenses • One time cost for professional license or certificate • Student disability expenses • Employment expenses for co-op study • Less than half-time enrollment, room and board for a limited duration • Independent student or dependent student living with parent who receives BAH – COA can only include board – not room & board

6. TUITION AND FEES • Average vs. individual enrollment • Separate averages for various categories of students, e.g., undergraduate vs. graduate, in-state vs. out-of-state, program of study, dependent vs. independent, etc. • Fees: Must be required for student’s course of study OR be required of all students, e.g. equipment rental, required health insurance

7. BOOKS & SUPPLIES • FAA must determine a book allowance; can differentiate between undergraduate vs. graduate, academic discipline, etc. • Supplies: Incudes a reasonable amount as determined by your institution for documented rental/purchase of a computer; mandatory expenses associated with an academic program, e.g., musical instrument, medical supplies, mechanic’s tools, cosmetology kits/supplies, etc.

8. TRANSPORTATION • Different costs for residential, off-campus, commuter or on-line only students • Payment for purchase/lease of a car is not allowed • Study-abroad costs

9. ROOM & BOARD • Categorize student’s (without dependents) place of residence: • Living with parent(s) • Living in institutionally-owned housing • Living off-campus, must be based on reasonable expenses for student’s room & board: cannot exclude R&B for student’s enrolled in on-line only programs (Sec. 472 (10) • Living in on-base military housing (must exclude allowance for room)

10. PERSONAL/MISCELLANEOUS • Personal: includes clothing, laundry & cleaning, personal hygiene/grooming and recreation necessary to maintain living at a reasonable standard • Miscellaneous: • One-time purchase of a computer/musical instrument • Dependent care costs • Disability-related expenses

11. LOAN FEES • Must be included if student actually borrows a Direct Loan • Can be an actual loan fee amount or an average based on the same type of loan borrowed for attendance at the school • Optional to include loan fees for nonfederal conventional alternative or private student loan

12. COA RESTRICTIONS • Incarcerated students: tuition, fees, books & supplies only • Correspondence study: Actual tuition, fees, book, supplies; transportation, room & board costs incurred specifically while fulfilling a required period of residential training • Less than half-time students: tuition, fees, books, supplies, transportation, dependent care expenses, room & board (but for not more than 3 semesters, of which not more than 2 semesters may be consecutive

13. PJ: COULD ‘YA, WOULD ‘YA, SHOULD ‘YA? • Sec. 479A(a): Discretion of Student FAAs with adequate documentation: Ability to make adjustments on a case-by-case basis to the COA….can include, but not limited to: • Unusually high child care or dependent care costs • Professional wardrobe • Study-abroad costs • Enrollment “overloads” • Unusual transportation costs for emergency travel, e.g. death of immediate family member • Increased R&B for internships, medical rotations, study abroad, cooperative education, etc. • Special dietary needs • Student mortgage and other expenses associated with home ownership

14. SCENARIOS: WHAT SOME SCHOOLS DO AND QUESTIONS SOME SCHOOLS HAVE • Establish the COA but only package to direct costs • Exclude additional unsub eligibility • Delay disbursement until academic activity has been initiated • Prorate disbursement in modular programs • Delay disbursement and adjust COA to actual enrollment at census date • Make no PJ adjustments to COA • Exclude R&B for on-line programs – NOT PERMISSIBLE!! • Establish a national R&B rate for on-line programs • Other scenarios??

15. SCHOOL QUESTIONS • Can you do PJ for: X,Y, or Z?? • What can you do with COA to help improve the institutions cohort default rate? • Is there a minimum R&B COA for on-line only programs? • Must you include transportation for on-line only programs? • Other questions??