Cost of Attendance

1. Session 41 Cost of Attendance Mike Stein and Marcia Fediw| Nov-Dec. 2016 U.S. Department of Education 2016 FSA Training Conference for Financial Aid Professionals

2. AGENDA • Cost of Attendance (COA) Basics • Statutory COA Components • Professional Judgment • Special Circumstances

3. COA BASICS • COA minus Expected Family Contribution (EFC) equals need • Varies by institution and program • EFC stays the same at every school • The Department calculates EFC according to statutory formula

4. COA BASICS • Provides students with a projection of costs • Estimate of student’s educational expenses for the period of enrollment • Should be reasonable and realistic • Allow student to live reasonably as a student • Does not imply that ALL costs will be funded • Only COA components specified in statute are allowed

5. COA BASICS • COA budget represents costs over specified time period • Student’s Direct Loan is “packaged” for the period of time covered by COA budget • Generally academic year • Could be a single term • COA may only include costs associated with given period of enrollment

6. COA BASICS • Sets limit on total aid a student may receive • The institution determines maintenance levels • COA is for the student and not the student’s family • Generally, established by a standardized COA budget • Standardized budget is a best practice, but not required • Average vs. actual expenses

7. COA COMPONENTS • COA is determined by law and not subject to regulation by the Department • Law specifies the types of costs that can be included • You must determine the appropriate and reasonable amounts for each category at your institution

8. COA COMPONENTS • Basic standard COA components: • Tuition and Fees • Books, supplies, transportation, personal, miscellaneous • Room and Board • Dependent Care • First professional license • Disability expenses • Study-abroad expenses • Employment expenses for co-op study • Loan fees

9. TUITION AND FEES • Tuition and fees normally assessed for students carrying same academic workload as determined by institution • Actual or average tuition charges may be used • May include cost of rental or purchase of equipment, materials or supplies of all students in same program of study • May include wide range of fees, for example: • Health insurance • Malpractice insurance

10. BOOKS AND SUPPLIES • Cost of educational materials related to the student’s program of study • Includes: • Books • Supplies • Transportation • Miscellaneous personal expenses

11. BOOKS AND SUPPLIES • Personal Computer • May be included on a yearly basis • May be allowed only once • May be allowed once with a set amount for annual upgrade • Reasonable amount • May be included as standard COA component • Student may be required to document need

12. BOOKS AND SUPPLIES • Transportation • Cost of travel between student’s residence and the institution • Cost of travel necessary to complete course of study • Costs of operation and maintaining a car, but not for purchase • Cost of travel between student's permanent residence and institution • You decide how many such trips are reasonable • May not include expenses for student’s family to travel

13. BOOKS AND SUPPLIES • Miscellaneous personal expenses can include • Clothing, laundry, personal hygiene, etc. • Reasonable amount for leisure/recreation • Based on living as a student • Not inclusive of needs of student’s family • Not meant to supplement tourism activities

14. ROOM AND BOARD • Students without dependents living at home with parents • Institution determines allowance • Students living on-campus • Allowance normally assessed most residents • Assumes a roommate • Students living off-campus and not with parents • Allowance based on reasonable expenses for student’s room and board • Average cost of apartment rentals in the city/region • Includes estimated amount for meals

15. DEPENDENT CARE • Covers periods including but not limited to • Class time • Study time • Field work • Internships • Commuting time • Based on number and age of dependents • Should not exceed reasonable cost in the community for the type of care provided

16. FIRST PROFESSIONAL LICENSE • Allowance for one-time direct costs of obtaining first professional license • For students enrolled in a program that requires licensure or certification (e.g. each step of United States Medical Licensing Exam (USMLE) • Includes • Fees required to take licensing exam • Costs of applying for and obtaining license or certification • Costs incurred in travelling to a residency interview for medical students • Costs must be incurred during the period of enrollment

17. DISABILITY EXPENSES • Reasonable allowance for costs related to student’s disability • Special services • Personal assistance • Transportation • Equipment • Supplies • Must be expenses not covered by another agency

18. STUDY ABROAD • For students enrolled in eligible study abroad programs approved for credit by home institution • Reasonable costs associated with such study

19. COOPERATIVE EDUCATION • Reasonable allowance for costs associated with such employment • May include • Commuting • Meals • Transportation • Other reasonable expenses

20. LOAN FEES • For students receiving loans • Fees required to receive Direct and non-federal loans • Can use exact fees or an average charged to borrowers of the same type of loan at your school • To be included in COA, loan fees for private loans must be charged to the borrower during the period for which the loan is intended

21. PROFESSIONAL JUDGMENT • Institutions have statutory authority to use professional judgment to adjust COA • Must be done on case-by-case basis for special circumstances • Adjustments must be documented • Not meant to appeal living standards deemed appropriate by the institution as reflected in standard COA budget

22. PROFESSIONAL JUDGMENT • Institutions are never required to exercise professional judgment • Your decision can not be questioned by an auditor not agreeing • May be disallowed if not done on a case-by-case basis or not properly documented • Student has no appeal rights • Be fair but judicious

23. PROFESSIONAL JUDGMENT • Examples: • Unusually high travel expense • Special dietary needs • Lack of housing options in-line with standard COA costs • Need for specialized computer equipment

24. SPECIAL CIRCUMSTANCES • Costs for periods other than nine months • Costs waived or paid by other sources • Limitations to tuition and fees component • Fluctuating currency • DCL GEN-10-18: • https://ifap.ed.gov/dpcletters/GEN1018.html

25. CONTACTS • Email: FSA.Foreign.Schools.Team@ed.gov • Phone: 202-377-3168 • Fax: 202-377-3486 • Mail: U.S. Department of Education Multi-regional and Foreign School Participation Division Union Center Plaza, 7th Floor 830 First Street, NE Washington DC, 20202 (20002-5340 if Overnight/Courier)

26. SCHOOL ELIGIBILITY SERVICE GROUP (SESG)Ron Bennett - Director, School Eligibility Service Group, Washington, DC (202) 377-3181School Eligibility Service Group General Number: (202) 377-3173 or email: CaseTeams@ed.gov Or call the appropriate School Participation Division manager below for information and guidance on audit resolution, financial analysis, program reviews, school and program eligibility/recertification, and school closure information. New York/Boston School Participation Division Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New Jersey, New York, Puerto Rico, Virgin Islands Betty Coughlin, Director (646) 428-3737 Tracy Nave – Boston (617) 289-0145Jeremy Early– Washington, DC (202) 377-3620Chris Curry – New York (646) 428-3738 Philadelphia School Participation Division District of Columbia, Delaware, Maryland, Pennsylvania, Virginia, West Virginia Nancy Gifford, Director (215) 656-6436 John Loreng – Philadelphia (215) 656-6437 Sherrie Bell– Washington, DC (202) 377-3349 Multi-Regional and Foreign Schools Participation Division Michael Frola, Director (202) 377-3364 Barbara Hemelt − Washington, DC (202) 377-4201 Joseph Smith − Washington, DC (202) 377-4321 Mark Busskohl – Washington, DC (202) 377-4572 Michelle Allred – Dallas (214) 661-9466 Atlanta School Participation Division Alabama, Florida, Georgia, Mississippi, North Carolina, South CarolinaChristopher Miller, Director (404) 974-9297 David Smittick – Atlanta (404) 974-9301 Vanessa Dillard – Atlanta (404) 974-9418 Dallas School Participation Division Arkansas, Louisiana, New Mexico, Oklahoma, Texas Cynthia Thornton, Director (214) 661-9457 Jesus Moya – Dallas (214) 661-9472 Kim Peeler – Dallas (214) 661-9471 Kansas City School Participation Division Iowa, Kansas, Kentucky, Missouri, Nebraska, TennesseeRalph LoBosco, Director (816) 268-0440Dvak Corwin – Kansas City (816) 268-0420 Angela Beam – Kansas City 816) 268-0534 Jan Brandow – Kansas City (816) 268-0409 Chicago/DenverSchool Participation Division Illinois, Minnesota, Ohio, Wisconsin, Indiana, Colorado, Michigan, Montana, North Dakota, South Dakota, Utah, WyomingDouglas Parrott, Director (312) 730-1532 Earl Flurkey – Chicago (312) 730-1521 Brenda Yette – Chicago (312) 730-1522 Sarah Adams − Chicago (312) 730-1514 San Francisco/Seattle School Participation Division American Samoa, Arizona, California, Guam, Hawaii, Nevada, Palau, Marshall Islands, North Marianas, State of Micronesia, Alaska, Idaho, Oregon, WashingtonMartina Fernandez-Rosario, Director (415) 486-5605 Gayle Palumbo − San Francisco (415) 486-5614 or Seattle (206) 615-3699 Dyon Toney − Washington, DC (202) 377-3639 Erik Fosker – San Francisco (415) 486-5606

27. QUESTIONS?