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The next few emails in our series will be helpful to have on hand as you begin comparing financial aid award offers from different schools and start making decisions about how to finance your student's education. Today's email explains a section you will see on all award letters: cost of attendance.
What exactly is the "cost of attendance?"
The cost of attendance (COA)—sometimes referred to as the "student budget"—is an estimate of what it costs a typical student to attend a college or university for one academic year. Don't be startled by the COA you see on the award letter from the University of Denver. The cost of attendance doesn't only include tuition; it also takes basic living expenses into account.
Why is this listed on the financial aid award letter?
Every student who applies for aid is assigned a cost of attendance. This COA serves two purposes:
- to provide an estimate of the cost to attend DU for one year, and
- to set a limit on the amount of financial aid your student can receive during the academic year (which federal regulations require us to do).
This means actual expenses may be different from what's listed on the award letter, and the total amount of your student's aid—including scholarships, grants, loans, and work-study—can't exceed the total cost of attendance.
What's included in the COA?
The cost of attendance is made up of two different types of costs: direct and indirect.
- Direct costs are items that will appear on the University bill, such as tuition, fees, and room and board (if your student lives on campus).
- Indirect costs will not appear on the bill, but are estimated costs associated with going to college and should be included in the budget. These include items like books, transportation and personal expenses.
Here's an example...
A typical DU undergraduate student living on campus and taking a full load of classes will have the following cost of attendance for the 2019-20 school year:
| Direct Costs: |
Tuition |
$51,336 |
| |
Fees |
1,179 |
| |
Room and Board |
13,437 |
| |
Subtotal |
$65,952 |
| Indirect Costs: |
Books |
1,200 |
| |
Transportation Expenses |
1,536 |
| |
Personal Expenses |
1,404 |
| |
Average Loan Fees |
70 |
| |
Cost of Attendance |
$70,162 |
Let's look at each line-item in more detail:
- Tuition and Fees: These figures reflect the cost of tuition and fees for a student taking 12-18 credits during each of the fall, winter and spring quarters of the 2019-20 academic year (which is considered full time).
- Room and Board: Otherwise known as "housing and meals," DU calculates this figure by using the weighted average of a double-occupancy room on campus and the 125-block meal plan. (Want to know specific rates? Visit the Housing & Residential Education website.)
- Books: This is an estimate of the cost of books and supplies for a typical student for the entire academic year. Students are not billed directly by DU for books or supplies.
- Transportation: This is an estimate of the cost of traveling to and from campus or the cost of operating and maintaining a vehicle. Unless a DU parking permit is purchased, you will not be billed directly for transportation costs.
- Personal Expenses: This is an estimate of costs for clothing, haircuts, entertainment, etc. for the year. Money actually spent on these types of items will vary from student to student. These items will not appear on the DU bill.
- Average Loan Fees: There is an origination fee of 1.062% for Federal Direct Subsidized and Unsubsidized student loans, which is taken out of the loan before funds are sent to DU. The $70 listed above is the average fee for students who borrow these loans. Actual fees will depend on the amount your student borrows (if any).
Where do these figures come from?
Direct costs are determined by the University of Denver. For indirect costs, we use market research and the recommended guidelines published by the Colorado Department of Higher Education. Most figures change slightly every year.
One final note...
When comparing financial aid packages from other schools, it's important to focus on the unmet cost (or "bottom line"), not just the sticker price or the amount of financial aid awarded. We will address how to compare offers and determine the unmet cost to attend DU in a future Financial Aid 101 email.
That's it for this week! Want to review past Financial Aid 101 emails? Check out the archives.
Up next week: How Your Aid Package is Determined
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