What Can We Include In the Cost Of Attendance For Online Programs?

Correspondence coursework and distance education have distinct definitions under 34 CFR 600.2 of the Institutional Eligibility regulations, so you must classify the online coursework populations accordingly. The cost of attendance (COA) follows those definitions. If the courses are truly distance education courses, you must include all required COA components under Section 472 of the Higher Education Act of 1965 (HEA), as amended [20 USC 1087LL], as with regular campus-based residential students, including housing and food (living expenses), transportation, and miscellaneous personal expenses. A distance education course is not considered a correspondence course and thus does not have COA restrictions for Title IV purposes.

However, a student's COA must be adjusted using professional judgment (PJ) if the financial aid administrator determines that distance education study results in substantially reduced costs. Since this authority is PJ authority, it can only be applied on a documented student-by-student basis and not to an entire class of students (i.e., you cannot apply it across-the-board to all online students).

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Professional Judgment and Cost of Attendance.