Cost of Attendance A NASFAA Authorized Event Presented by Lakisha Sanders Director of Financial Aid Clayton State University GASFAA Fall Workshop 10/5/2017

Lesson 1: Student Budget Construction

Introduction to Budgets Cost of Attendance EFC Financial Need EFA EFC Remaining Financial Need EFA Remaining Eligibility

Student Budget Construction Purposes Principles Realistic Accurate Projection Equitable Comprehensiveness Reasonableness Systematic Development Documentation

Quick Quiz 1: 1. What should the COA represent? 2. The same formula is used to calculate a student’s eligibility for both need-based and non-need-based aid.  True False Page 5

Quick Quiz 1: 3. Which of the following are purposes of the student budget construction process? Develop realistic budgets Enrollment management Accurate projection of costs Establish reasonable amounts Student diversity and retention Equity 4. Why is documenting the student budget construction process important? 5. What elements should a school’s student budget construction policy include? Page 5

Do you agree Title IV aid should not be used to support a student’s lifestyle choice? Why or why not? In your opinion, why is equity a principle of the student budget construction process? What documentation would you use for the student budget construction process? Why? Page 6

Noninstitutional Costs Setting Costs Institutional Costs Noninstitutional Costs Tuition and fees On-campus housing Books and supplies Transportation Personal expenses Off-campus housing Utilities Medical

Transportation Options / Distance Setting Costs Housing Options Cost of Living Transportation Options / Distance

Noninstitutional Costs Collecting Data Institutional Costs Noninstitutional Costs Tuition and fees On-campus housing Books and supplies Transportation Personal expenses Off-campus housing Utilities Medical

Primary Data Secondary Data Collecting Data Directly from students: Surveys/ questionnaires Expenditure diaries Personal interviews Third-party sources: Published institutional data Faculty and staff Class project Community sources Government indices Comparisons

Selection of data source(s) Collecting Data Selection of data source(s) Actual or Average Frequency of collection Number of subcategories

Quick Quiz 2: 1. In the student budget construction process, costs can be divided into what two broad categories? 2. Schools must always use the actual cost of components in the student budget.  True False Page 10

Quick Quiz 2: 3. Which of the following are examples of primary data sources a school could use to collect data when developing student budgets? Personal interviews Budget questionnaires Consumer Price Index Housing services staff Expenditure diaries Page 10

Quick Quiz 2: 4. What are two indices schools could use to help set noninstitutional costs? 5. How frequently should a school review and update the value of student budget components? Page 10

Learning Activity: Interview Page 11

Learning Activity: Interview 1. How often does the school collect data from primary sources? What primary data source is used and why? 2. How often does the school collect data from secondary sources? What secondary data sources are used and why? 3. Which staff is responsible for reviewing and updating budget components? When does this review take place? 4. How often is the budget construction policy reviewed and updated? 5. How could the institution improve its budget construction process? Page 11

In your opinion, what are the best secondary data sources to use in the student budget construction process? Why? What approach would you take to researching costs at your institution? Why would you take this approach? What do you believe are the advantages and disadvantages to using school budget comparisons as a secondary data source? Page 12

Lesson 2: Cost of Attendance Components and Restrictions

General Concepts for Developing Budgets Part F, Section 472, of the Higher Education Act of 1965 (HEA) identifies costs that may be included

Miscellaneous personal expenses Basic COA Components Tuition and fees Books and supplies Room and board Transportation Miscellaneous personal expenses

Additional Cost Allowances Dependent care expenses Disability-related expenses Cooperative education program expenses Study abroad expenses Cost of a first professional credential Educational loan fees

Basic COA Components Tuition and fees

Tuition and fees Basic COA Components Example 9,000 students are charged the $2,000 in-state tuition rate 1,000 students are charged the $4,000 out-of-state tuition rate

Basic COA Components Tuition and fees Example Step 1

Basic COA Components Tuition and fees Example Step 1 Step 2

Basic COA Components Tuition and fees Example Step 1 Step 2 Step 3

Tuition and fees Basic COA Components Tuition for Title IV recipients Allowable fees Necessary for all students within defined category If paid or passed on to third parties only if charged to broad defined category of students Up-front fee collection Cooperative education

Books and supplies Basic COA Components May vary among categories of students May be included in tuition and fees if either: Rate is less than competitive market rate and provided within 7th day of payment period Institution documents books or supplies not available or accessible elsewhere, or Institution demonstrates compelling health or safety purpose

Transportation Basic COA Components Reasonable allowance for: Getting to school and back Other travel related to a course of study Can include operating and maintenance costs of a car, but not purchase or lease

Miscellaneous Personal Expenses Basic COA Components Miscellaneous Personal Expenses Reasonable allowance Examples include: Clothing Hygiene and grooming Recreation

Personal Computer Allowance Basic COA Components Personal Computer Allowance HEA 472

Room and Board Allowance Basic COA Components Room and Board Allowance HEA 472

Basic COA Components Student Category Allowance Students without dependents living at home with parents Allowance based on room and board expenses reasonably incurred by such students Students without dependents living in school-owned or operated housing Standard allowance based on the amount normally assessed most of the school’s residents for room and board Students living in on-base military housing or in housing for which the military provides a basic housing allowance Allowance for board, but not for room; expenses reasonably incurred by such students All other students (including students with dependents living at home or in campus housing and all students living off campus, but not with a parent) Allowance based on the expenses reasonably incurred by such students for room and board

Would you establish different room and board costs for different student categories and situations? Why, or why not? To what extent do you expect a student to have a roommate or roommates in order to reduce costs? Would you have the same expectations for an older, single student as you would for a traditional-age student, or do you think an older student may have different costs? Why or why not? Page 28

Would a student who is a single parent have less opportunity to share lodging, and therefore costs, with another adult? If the student is married and part of a family unit, how are his or her costs separated from the rest of the family’s costs? If a student were living with a nonstudent companion whose income is not considered in calculating the EFC, would you decrease allowable living costs for that student? Pages 28-29

For how many of these decisions would you establish a specific treatment policy, and how much room would you leave for exceptions on an individual, case-by-case basis? Would the need to document any deviation from policy have an influence? Page 29

Additional COA Allowances Dependent Care Benchmark = reasonable cost in the community Dependent included in household size Necessary to pay for care in order to attend class, study time, field work, or internship, or for commuting time Documentation

Additional COA Allowances Disability-related Expenses Reasonably incurred expenses related to disability Not provided for by other assisting agencies Americans with Disabilities Act (ADA) defines many types of disabilities Documentation

Additional COA Allowances Cooperative Education Credit-bearing program combining professional work experience with academic research and coursework Reasonable costs associated with employment Documentation

Additional COA Allowances Study Abroad Approved for credit by home institution Reasonable costs associated with study Documentation

Additional COA Allowances First Professional Credential Professional licensure or certification is required in field Cost incurred while student enrolled Once per student per academic program At option of institution Documentation

Additional COA Allowances Educational Loan Fees Actual or average cost Required for any Direct Loan borrowed At option of institution for nonfederal educational loans

Learning Activity 1: Derrick Washington—Basic and Additional Costs Page 37

Learning Activity 1: Derrick Washington—Basic and Additional Costs Widowed, with two children Returning to college full time as a junior Living in a family apartment on campus Does not need a meal plan Children attend after-school tutoring program Recent back surgery requires a wheelchair Buys a $1,000 laptop computer Page 37

Learning Activity 1: Derrick Washington—Basic and Additional Costs Exercise 1: Undergraduate Tuition and Fees 23,000 Books and Supplies 900 Transportation 1,100 Miscellaneous Personal Expenses 1,900 Personal Computer 800 Room and Board 8,500 36,200 Page 40

Learning Activity 1: Derrick Washington—Basic and Additional Costs Exercise 2: The total cost of attendance for Derrick is: Dependent Care: 8-Year-Old Child 400 Dependent Care: 11-Year-Old Child 900 Disability-Related Costs 2,000 Direct Loan Fees 59 3,359 $ 39,559 Page 40

COA Restrictions Tuition and Fees Books and Supplies Room and Board Transportation Miscellaneous

COA Restrictions—Less-Than-Half-Time Tuition and Fees Books and Supplies Room and Board Transportation Dependent Care Miscellaneous

COA Restrictions—Less-Than-Half-Time Room and Board At option of institution No more than three semesters (or equivalent) No more than two consecutive semesters

COA Restrictions—Less-Than-Half-Time Tuition and Fees Books and Supplies Room and Board Transportation Dependent Care Miscellaneous

COA Restrictions—Correspondence Study Tuition and Fees Must reflect actual costs assessed by institution Books and Supplies Room and Board Transportation Personal Computer Miscellaneous

COA Restrictions—Correspondence Study Room and Board Only if incurred during period of on-site residential training Transportation If required by program and provided by institution Personal Computer

COA Restrictions—Correspondence Study Tuition and Fees Must reflect actual costs assessed by institution Books and Supplies Room and Board Transportation Personal Computer Miscellaneous

COA Restrictions—Incarcerated Students Tuition and Fees Books and Supplies Room and Board Transportation Miscellaneous

Learning Activity 2: Derrick Washington—Less-Than-Half-Time-Enrollment Page 44

Learning Activity 2: Derrick Washington—Less-Than-Half-Time-Enrollment Determine his eligibility at less-than- full-time enrollment for a full year, starting with a calculation of COA Children will attend after-school tutoring program Living in a family apartment on campus Does not need a meal plan Page 44

Learning Activity 2: Derrick Washington—Less-Than-Half-Time-Enrollment Tuition and Fees 6,000 Books and Supplies 300 Transportation 800 Dependent Care: 8-Year-Old Child 400 Dependent Care: 11-Year-Old Child 900 Room and Board 8,500 16,900 Page 44

Does your school offer any cooperative education programs, and if so, what types of expenses are typically included for this allowance? Does your school offer distance education courses or programs? If so, does your school have a mechanism in place to check for educational costs which are substantially reduced when compared to the standard COA for residential programs within the same COA category of students? Page 45

If your school offers distance education courses or programs, identify those with substantially reduced educational costs and detail any professional judgment adjustments you would make to the COA for students enrolled in each of those courses or programs? Page 45

Lesson 3: Recalculations and Non-Title IV Aid

Required COA Recalculations Federal Pell Grant Federal Pell Grant IASG IASG TEACH Grant TEACH Grant

Required COA Recalculations Semester 1 Semester 2 Semester 3 Required COA Recalculations Enrollment Status Change Enrollment Status Change

Required COA Recalculations Completed CLASS A Completed CLASS B Withdrew CLASS C No Show CLASS D

Required COA Recalculations EFA includes campus-based aid Overaward COA

Required COA Recalculations Direct Loan $ < ½-time ≥ ½-time

Optional COA Recalculations Institutional Policies Pell Recalculation Policy “Census Date” If enrollment status change prompts a Federal Pell Grant recalculation under policy, COA must also be recalculated Institution sets other policies to recalculate COA

Non-Title IV Aid Impact on COA COA Components Tuition and Fees EFA Books and Supplies Offset to specific COA component NOT prepaid tuition plans State aid Scholarship Room and Board Transportation Misc./Personal

Non-Title IV Aid Impact on COA COA Components Tuition Waiver Tuition and Fees EFA Books and Supplies Room and Board Transportation Misc./Personal

Student’s COA Components Non-Title IV Aid Impact on COA COA Components Tuition Waiver Books and Supplies Room and Board Student’s COA Components Transportation Misc./Personal

Non-Title IV Aid Impact on COA Room and Board Waiver COA Components Tuition and Fees Books and Supplies Room and Board EFA Transportation Misc./Personal

– OR – Non-Title IV Aid Impact on COA Room and Board Waiver COA Components Tuition and Fees – OR – Books and Supplies Transportation Misc./Personal

Quick Quiz: 1. When recalculation of a Federal Pell Grant is required by regulation, any changes in the COA must be taken into account as well.  True  False For which of the following programs are COA recalculations required only if the school has a policy to recalculate the award solely for a change in costs?  Federal Direct Loans  TEACH Grant  Federal Perkins Loan  IASG Page 64

Quick Quiz: 3. When is recalculation of COA optional for the Federal Pell Grant Program? 4. What are two examples of how a tuition discount or waiver may be handled on the student’s account? Page 64

Does your school provide tuition discounts or waivers, either as a resident assistant benefit or otherwise? Does your school reduce the COA or package the tuition discount or waiver as estimated financial assistance (EFA)? Why is it handled this way? Page 65

Learning Activity: COA Recalculation Case Studies Page 66

Learning Activity: COA Recalculation Case Studies 1. Miriam indicated on her FAFSA she would live at home with her parents during her final year at Uptown College. Once school began, Miriam went to the Office of Financial Aid to request additional loan funds. Miriam’s counselor determined Miriam was awarded up to the amount of her COA, so she is not eligible for additional aid. Miriam explained she decided to get an apartment off-campus, and her parents are willing to take a Direct PLUS Loan to help cover the cost of her housing and food. Uptown College has a higher budget for students living off-campus versus those living on-campus or at home with parents. Page 66

Learning Activity: COA Recalculation Case Studies 2. Brandon was a full-time student in a credit-hour program during the fall semester at Uptown College. Brandon saw a drop in his grades at the end of the fall semester, so before the spring semester began, he decided to drop to half-time enrollment. He was awarded a Federal Pell Grant, FSEOG, and Federal Perkins Loan. Brandon declined his Direct Subsidized Loan and Direct Unsubsidized Loan. Page 66

Learning Activity: COA Recalculation Case Studies Is recalculation of the COA required or optional? Why? Miriam Brandon The school is required to recalculate for changes in enrollment, but not for changes to COA components such as room and board. The institution may have a policy to consider these types of changes. Recalculation is required for the Federal Pell Grant because there was a change in enrollment status between the terms of the credit-hour program. For the campus-based programs, the recalculation is optional, but the school should check for possible overawards. Page 66