What Is Cost of Attendance and How Do Colleges Use It?

Cost of attendance is the estimated total cost of attending college in a given year. It includes tuition and fees, books and supplies, room and board, transportation and personal expenses, and it is an official number determined by each college. Sometimes, people refer to cost of attendance as COA.

You can find the cost of attendance on your school’s website. There may be multiple COAs that differ by housing situation. For example, the cost for a student living in dorms on campus will be different from that of a commuter student.

Cost of attendance represents the full price of a college before any aid — it’s the school’s “sticker price.” However, many students receive financial aid, grants or scholarships and pay less.

» MORE: How to pay for college

How is cost of attendance used?

Colleges use cost of attendance to determine the amount of financial aid for which you’re eligible. Starting with the 2024-25 academic year, schools calculate aid eligibility by subtracting your Student Aid Index (SAI) from the school’s cost of attendance:

Cost of attendance - SAI = financial need

SAI, formerly known as expected family contribution or EFC, is an estimate from the federal government of how much money your family can afford to pay toward your college education, either out of pocket or through student loans.

The SAI is based on information you enter on the Free Application for Federal Student Aid (FAFSA). Schools subtract your Student Aid Index from their cost of attendance to calculate the maximum amount of need-based aid you can receive.

» MORE: Find an affordable college choice

For example, if your school’s COA is $20,000 and your SAI is $7,000, then your financial need is $13,000. Need-based aid can include scholarships, Pell Grants, work-study and subsidized federal student loans, where the government pays the interest while you are in school.

The amount of aid you get may be less than your calculated financial need.

You can get an idea of what you can expect to actually pay by using a net price calculator, a tool that calculates the college’s total cost — including tuition, room and board and books — minus any grants and scholarships you’re eligible for. All colleges that offer federal financial aid must have an online net price calculator to help students and parents considering out-of-pocket costs. A net price calculator considers the official cost of attendance, your SAI and the aid available at that school. Use the net price to compare your costs at different schools; the Consumer Financial Protection Bureau also has a cost of attendance comparison tool to help with your research.

The direct and indirect costs of attending college

Your cost of attendance will take into consideration your direct and indirect costs.

Direct costs are those paid directly to your college, such as for tuition, fees and meal plan.

Indirect costs are other expenses you will likely incur beyond what you pay to the college, like bills, transportation, books and supplies and living expenses.

Knowing your direct and indirect costs will give you the full scope of what college will realistically cost you. Understanding indirect costs will also help you identify areas where you may be able to save money. For example, College Board suggests buying used or digital books if the cost of textbooks is a high indirect cost.

Does cost of attendance affect student loans?

Cost of attendance affects the amount of student loans you can borrow. You can't borrow more than the cost of attendance minus other aid, and your school tells lenders — government and private — how much loan money you’re eligible for.

Federal student loans also have limits unrelated to cost of attendance. For example, a dependent freshman student can only borrow up to $5,500 in federal student loans regardless of need or COA. If you need more money after you reach the federal student loan limit, choose other resources like family savings, merit-based scholarships or grants. Beyond that, private student loans may be available to close the gap.

Is college worth the cost?

Some students may question whether college is worth the cost when the average undergraduate student that borrows funds to help pay for a bachelor’s degree carries a debt of $29,300, according to College Board. Check out the video below to see what the Nerds have to say about whether college was worth the cost for them.