Can a School Limit the Cost Of Attendance For Distance Education Students To Tuition, Fees, and Books, Course Materials, Supplies, and Equipment?

No. Under Section 472(10) of the Higher Education Act of 1965 (HEA), as amended, [20 USC 1087LL], the cost of attendance (COA) of online students contains the same cost components as students attending classes on campus.

However, under Section 484(l) of the HEA [20 USC 1091], a financial aid administrator may exercise professional judgment (PJ) to reduce the COA of an online student if he or she believes distance education results in reduced costs to the student. As with other PJ decisions, reductions in the COA must be made on a case-by-case basis with appropriate documentation (rather than as an across-the-board school policy). Also see Volume 3, Chapter 2 of the FSA Handbook. 

P&P Builder: NASFAA’s Policies & Procedures (P&P) Builder guides you step-by-step through the creation of a centralized, accessible policies and procedures manual. This is included in the cost of NASFAA Value Plus membership. There is an additional cost for other membership levels.