Which statement best describes Cost of Attendance (COA) components?

Which statement best describes Cost of Attendance (COA) components?

• A. COA includes only tuition and room and board.
• B. COA includes transportation and personal expenses only.
• C. COA includes tuition, fees, housing, meals, books, supplies, transportation, and personal expenses.
• D. COA determines loan interest rates.

Answer: (C)

Cost of Attendance is an estimate of what it costs to attend college for a year, used to determine financial aid eligibility. It includes both what you pay to the school and other living expenses. Direct costs cover tuition, required fees, housing, and meals. Indirect costs cover books and supplies, transportation, and personal expenses. Because it accounts for all these categories, the statement that lists tuition, fees, housing, meals, books, supplies, transportation, and personal expenses best describes COA. It doesn’t set loan interest rates; those depend on the loan program and terms rather than COA.

Cost of Attendance is an estimate of what it costs to attend college for a year, used to determine financial aid eligibility. It includes both what you pay to the school and other living expenses. Direct costs cover tuition, required fees, housing, and meals. Indirect costs cover books and supplies, transportation, and personal expenses. Because it accounts for all these categories, the statement that lists tuition, fees, housing, meals, books, supplies, transportation, and personal expenses best describes COA. It doesn’t set loan interest rates; those depend on the loan program and terms rather than COA.