constructing cost of attendance (coa) budgets a roundtable discussion
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Constructing Cost of Attendance (COA) Budgets A Roundtable Discussion. Catherine Demchak, Carnegie Mellon University – Heinz College Judy Schneider, Financial Aid Services. Talking points…. What is a Cost of Attendance (COA) Budget? What should be included? Where do I start? - PowerPoint PPT PresentationTRANSCRIPT
Constructing Cost of Attendance (COA) Budgets
A Roundtable Discussion
Catherine Demchak, Carnegie Mellon University – Heinz CollegeJudy Schneider, Financial Aid Services
Talking points…
What is a Cost of Attendance (COA) Budget?
What should be included?
Where do I start?
How many different COAs are needed?
How often do I need to update the COA?
What is a Cost of Attendance (COA) Budget?The cost of attendance (COA) is the foundation for establishing a student’s financial need. It sets a limit on the total aid that a student may receive for purposes of…
Pell Grant CalculationsTEACH GrantCampus-Based ProgramsDirect Subsidized and Unsubsidized LoansDirect PLUS/Graduate PLUS Loans
The costs that you establish for your students will be used to calculate their Federal Student Aid award amounts and package their aid.
The COA should include…
Direct Costs, (costs paid to the university):Tuition FeesHealth Insurance
Indirect Costs, (costs associated with attending school):Books and Supplies (laptops, cameras, notebooks, software, etc…)Room and BoardTransportationPersonal ExpensesLoan fees
(Some colleges differentiate costs for state residents vs. nonresidents.)
What should be included?
On a case-by-case basis you may want to adjust the COA for expense such as,
Dependent Care (child, spouse and/or elder care)Study Abroad ExpensesDisability ExpensesOther Education-Related Expenses
Always be sure to collect documentation for any additional expense added to your established COA.
What should be included?
Where do I start?
Review COAs of schools in your areaContact their financial aid office to inquire about their methods for determining living expenses
Use cost of living estimatorsCollegeBoard living expense costs by region
Talk to your program directorsEstimates of books and supplies
Survey your studentsHousing and miscellaneous costs
Where do I start?College Board
http://professionals.collegeboard.com/higher-ed/financial-aid/living-expense
Where do I start?College Board
http://professionals.collegeboard.com/higher-ed/financial-aid/living-expenseThe base budgets for 2014-15 are:
Moderate (Prevailing) Budgets
12 Month $23,010
9 Month $17,260
Low Budgets
12 Month $15,420
9 Month $11,560
The approximate breakdown of the living expense component is as follows:
Housing: 55% Transportation: 17% Miscellaneous: 28%
The housing allowance breaks down between housing (including utilities) and food at approximately 75 percent and 25 percent.
Where do I start?
College Boardhttp://professionals.collegeboard.com/higher-ed/financial-aid/living-expense
Nine-Month Academic Year 2014-15
Moderate 9-Month Budget
Low 9-Month Budget
United States $ 17,260 $ 11,560
Northeast:
Boston–Cambridge–Quincy, MA–NH
18,296 12,254
New York–Northern New Jersey–Long Island, NY–NJ–PA
18,986 12,716
Philadelphia–Camden–Wilmington, PA–NJ–DE–MD
18,296 12,254
Pittsburgh, PA 17,260 11,560
Where do I start?Cost of Living Calculator http://www.bestplaces.net/col/
Comparison: Cost of LivingWilkes-Barre, PA to Philadelphia, PA
COSTOFLIVING Wilkes-Barre Philadelphia United States
Overall 80 96 100
Grocery 104.2 115.9 100
Health 97 103 100
Housing 30 61 100
Utilities 111 127 100
Transportation 102 106 100
Miscellaneous 104 116 100
Where do I start?Cost of Living Comparison Highlights
Philadelphia is 18.6% more expensive than Wilkes-BarrePhiladelphia, housing costs are 67.0% more than Wilkes-Barre, housing costs.Health related expenses are 6.0% more in Philadelphia.
ComponentPhiladelphia, PA Wilkes-Barre PA (16.6% Less)
Low Budget Moderate Budget Low Budget Moderate Budget
Housing (55%) $ 6,740 $ 10,063 $ 5,621 $ 8,392
Transportation (17%) $ 2,083 $ 3,110 $ 1,737 $ 2,594
Miscellaneous (28%) $ 3,431 $ 5,123 $ 2,862 $ 4,273
Total Living Budget (100%) $ 12,254 $ 18,296 $ 10,220 $ 15,259
How many different COAs are needed?
Student expenses will vary from student to student and actual costs may differ based on the program of study.
UndergraduateGraduateOn-Campus vs. Off-Campus HousingIn-State vs. Out-of-StateProgram SpecificTerm SpecificEnrollment Specific (Full-time vs. Part-time)Distance Programs
How many different COAs are needed?
Cost of Attendance for a Distance Education Student
The law prohibits you from making a distinction based on the mode of instruction when determining the cost of attendance for a student receiving all or part of the student’s instruction through distance education. However, you have the authority to use professional judgment to adjust the cost of attendance on a case-by-case basis to allow for special circumstances. For example, you may exclude transportation costs if you determine that such costs will not be incurred by a student. Such adjustments must be documented in the student’s file. (See “Professional Judgment” in the Application and Verification Guide.)*
*Taken from the 2014-2015 Student Aid Handbook, Volume 3 — Calculating Awards & Packaging, Chapter 2.
You should review and adjust the cost of attendance each year to reflect changes in the cost of living and changes in tuition and fees.
How often do I need to update the COA?
Questions?
