How Colleges Calculate Cost of Attendance

When comparing colleges, you may see a number called the Cost of Attendance (COA). Many students think this number is the same as their tuition bill, but that is not always the case.

Cost of Attendance is an estimate of what it may cost to attend a school for one academic year. Colleges use COA when determining financial aid eligibility.

What is Included in COA?

A school’s Cost of Attendance often includes both direct costs and indirect costs.

Direct costs are expenses that may be charged by the school, such as:

• Tuition
• Fees
• Housing
• Meal plans

Indirect costs are expenses students may have while attending school, such as:

• Books and supplies
• Transportation
• Loan fees

The actual amount a student spends may be different from the school’s estimate.

Why Do Colleges Include Indirect Costs?

Not all college expenses appear on the tuition bill. For example, students may need to buy books or travel to campus during the school year. Including these costs may provide a more complete picture of the expenses a student could face while attending college. Because every student’s situation is different, actual costs can vary.

Is COA the Amount You Will Pay?

Not necessarily. The Cost of Attendance is an estimate used for financial aid purposes. It is not a bill.  

The amount a student pays may be lower than the published COA. Financial aid, scholarships, grants, and other resources may help reduce out-of-pocket costs for some students.

Why Does COA Matter?

Cost of Attendance is one factor schools may use when determining financial aid eligibility. Schools may also review a student's Student Aid Index (SAI), a number calculated from information provided on the FAFSA. Together, COA and SAI help schools determine a student's financial aid eligibility.  

Understanding COA may also help students compare colleges and build a budget for the school year. When reviewing college costs, it can be helpful to look at the full Cost of Attendance rather than tuition alone.

The Bottom Line

Cost of Attendance is an estimate of what it may cost to attend a college for one academic year. It often includes both direct costs, such as tuition and housing, and indirect costs, such as books and transportation. Understanding what is included in COA may help students make informed decisions when comparing colleges and planning for college expenses.