Strategies to Decrease the Cost of College #2 – COA Surprises

Costs of Attendance

Surprises can be good or bad.

Good, such as pulling a forgotten $20 out of a jacket pocket not worn over a long, long winter, an unexpected message or letter from an old friend, a thoughtful gift.

Or not so good, such as opening your tuition bill and realizing it is going to cost thousands of dollars more than you expected. How can this happen? Don’t colleges and universities advertise costs?

Yes and no.

Colleges typically advertise cost in terms of Cost of Attendance (COA). Federal financial aid guidelines define COA as:

  • Tuition & fees
  • Room & board
  • Books & supplies
  • Transportation
  • Personal expenses

Many (dare I say most) institutions are less than transparent when advertising the “true” cost of an education – typically they only market and advertise these five COA components. 

Now the rest of the story…

Smart higher education consumers need to play detective, sleuthing through brochures, web pages, letters, etc. to unearth hidden costs – to determine your “true” cost of attendance.

What are these shadowy hidden costs? From differential tuition rates – to loan origination fees and everything in between, hidden costs come in all shapes, sizes, and forms – real money out of your pocket. Let’s examine a few:

A common hidden charge is a differential (extra) tuition rate. It is fairly common for students majoring in nursing, engineering, business, computer science (to name a few), to be charged an extra fee on top of regular tuition rates – see examples below:

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Most families do not realize advertised room and board COA charges are the “average” rate a student can pay. The real cost can span thousands of dollars as evidenced by these 2018-2019 rates:

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Look at this statement from a college web site – “All students receive a laptop as part of our laptop program.” Cool! Not so fast. Dig deep enough and you find students are not receiving a laptop, they are paying for the use of one – the real cost:

per semester.

Let’s talk disingenuous. In reviewing a financial aid award letter for a student this spring (see partial letter below), I noted the school understated their own cost of attendance (as calculated by their own Net Price Calculator) by thousands of dollars.

Note how they seem to have “forgotten” personal expenses or transportation in their “estimated” COA. “Luckily” when this was pointed out to the director of admission, this student’s award was adjusted upwards to include these real costs. 

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How about matriculation (new student) fees, course and lab fees, capital enhancement fees, tuition payment plan fees, credit card fees, excess credit charges beyond a full-time credit load, stadium fees, parking fees, health center fees – I digress… but I could go on and on and on…

Smart consumers need to shield themselves from COA surprises, by determining their “true” cost of attendance before choosing to enroll. Unearthing the “true” cost of attendance in many cases will be the difference between choosing one school over another – saving you thousands of $$ on the overall cost of your education.