I have heard a lot about the cost of attendance or the student budget. What is the cost of attendance and how does it affect my student loans?
One of the most important aspects of financial aid is the cost of attendance or the student budget. Really, the two terms are synonymous. Before a school awards financial aid, the financial aid office will determine how much money it should take you to attend school. The office will factor in the cost of tuition, fees, books, and living expenses. The school should also factor in whether you are dependent on your parents or are an independent student (independent students are often given a larger cost of attendance). Finally, the school will determine whether you are expected to contribute to the cost of your education based on the financial information you supplied in your Free Application for Federal Student Aid (FAFSA). The school will call this your EFC or your Estimated Family Contribution.
Once an EFC and budget has been established, the school will subtract the EFC from your total cost of attendance to arrive at the amount of financial aid you may receive. The school will then subtract any scholarships or grants you may receive from your remaining cost of attendance. If any cost of attendance still exists, you may borrow to cover the rest of your student budget. However, your total financial aid -- including student loans -- may never exceed the cost of attendance set by the school.
In certain circumstances, a student's budget may be increased. Talk to your financial aid office for specifics, but generally, daycare expenses and a one-time increase for the purchase of a computer may be added to your cost of attendance. Normally, you will be allowed to take out additional loans to cover any gap in your budget between grants/scholarships and your total cost of attendance.
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One of the most important aspects of financial aid is the cost of attendance or the student budget. Really, the two terms are synonymous. Before a school awards financial aid, the financial aid office will determine how much money it should take you to attend school. The office will factor in the cost of tuition, fees, books, and living expenses. The school should also factor in whether you are dependent on your parents or are an independent student (independent students are often given a larger cost of attendance). Finally, the school will determine whether you are expected to contribute to the cost of your education based on the financial information you supplied in your Free Application for Federal Student Aid (FAFSA). The school will call this your EFC or your Estimated Family Contribution. 