Calculating Cost of Attendance

Each year colleges calculate their cost of attendance using direct costs (generally paid directly to the college) and indirect costs (generally paid to an entity other than the college). Schools use this calculation as a base amount to begin the financial aid process. For students completing the Free Application for Federal Student Aid (FAFSA), the Expected Family Contribution (EFC) is subtracted from the Cost of Attendance which calculates the available financial need for the student. The financial aid officer then uses these numbers in conjunction with financial aid from the school and other outside aid to determine the student’s eligibility for Federal and State Financial Aid.

Direct Costs

• Tuition
• General Fees
• Technology Fees
• Lab Fees and other course related fees
• Room and Board (for those living on campus)
• Books and Supplies (usually considered a direct cost even though some books and supplies may be purchased from entities other than the college)

Indirect Costs

• Room and Board Allowance (for those living off campus)
• Transportation Allowance
• Personal and Miscellaneous Allowance
• Loan Fees
• Computer Purchase (Many colleges put a limit on the amount they will add to the Cost of Attendance for a computer and the number of times it can be added during the student’s tenure.)*
• Child Care*
• Special Equipment for Classes*
• Special Equipment for Physical Challenges the Student may incur*

* Usually require additional documentation in order to be included.

Expected Family Contribution (EFC)

This number is calculated from the information you entered on your Free Application for Federal Student Aid (FAFSA)and is used for several purposes including:

• As an index for Federal Pell Grant eligibility and award amount.
• As an index for Supplemental Education Opportunity Grant eligibility and amount.
• Subtracting from Cost of Attendance to determine a student’s <financial need>.
• Determining eligibility and amounts for the Perkins Student Loan.
• Determining eligibility for Subsidized or Unsubsidized Student Loans.
• Determining eligibility for state grants and scholarships.
• Determining eligibility for some institutional scholarships.
• Determining eligibility for some outside scholarships.
• Federal and State reporting (groups of students, not individual students).

Financial Need

Cost of Attendance - Expected Family Contribution = Financial Need

The financial need is the maximum need-based aid a student can receive from any source (Federal, State, College, or outside). This figure is used by the Financial Aid Officer to determine initial awarding of aid and must be checked each time a new source of aid is received or there is a change in enrollment or housing situation. If such a change puts the student over their financial need, adjustment to the student’s financial aid package is required. The most common of these adjustments is to change a student’s subsidized Stafford Loan to an unsubsidized Stafford Loan. In rarer instances, some aid might have to be reduced. When doing this, the Financial Aid Officer will try to reduce work study aid first, loan aid second, and grant aid as a last resort.

In the case of an aid adjustment, the student will receive notification via the MNU e-mail address with instructions to log onto the web portal and view the new aid package.