MASFAA 2013

October 6th – 9th, 2013

Indianapolis, Indiana

Building Student Cost of Attendance:  Issues and

IdeasDiane Fleming, Financial Aid Professional EmeritaSarah Soper, Director of Financial Aid, Indiana University East

AGENDA

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Overview of Cost of Attendance Components

Professional Judgment – Could ‘ya? Would ‘ya? Should ‘ya?

Scenarios: What some schools do – and questions some schools have

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

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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

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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

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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

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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.

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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

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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)

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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

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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

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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

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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

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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??

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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??