Hi, a question for those receiving Financial Aid/or scholarship package covering COA above tuition or entirely.
My understanding is COA is composed of 1. Tuition, 2. Housing/Insurance/Fees, and 3. food+basic amenities.
For those receiving a package exceeding 1,2, does this mean the institution will pay the student or provide some sort of stipend for the student to go buy #3?
Typically if your scholarship package is for the entire COA, it includes room and board, which includes food. Some schools will also cover books. You need to look closely at the details of your package because each school will be different.
Full COA includes tuition, fees, room and board. Scholarships and other funding (either via the school or external sources, including federal funding like pell grants and student loans) can fund up to 100% of those charges. If scholarships only cover tuition, fees, and room then the student will be on their own for board (meals.)
Scholarships that cover room and board will be taxable to the student. Outside scholarships have to be reported to the school, so the school can make sure the student doesn’t receive more than 100% of COA.
For my daughter, the scholarship covers tuition, fees, room, and board, but they do include personal expenses (including travel, textbooks, incidentals) in the COA. This remaining amount is “covered” by the offer of a student loan for the full estimated cost. So, in that sense, her financial aid does cover full COA, but that includes a loan offer for things beyond direct university costs.
Students who receive financial aid beyond tuition should also make sure they understand how their financial aid will change if they go off campus. Some believe that they will save money, but are unpleasantly surprised when their financial aid is reduced drastically.
If there is money in the financial aid package for personal expenses, books, off campus housing, etc the school will typically provide that money to the student directly. It’s very important to understand each school’s rules, though. Federal aid cannot be released more than 10 days in advance of the start of the semester, so schools generally base their aid disbursement date around that rule … and it takes at least a few days once disbursement is made to get a check cut. Some schools will hold the reimbursement checks for a period of time, to make sure that the student actually remains enrolled. There are lots of ways schools can handle their payments to students, so it’s important to ask the school.
My D received institutional aid that exceeded her tuition and fees. She used the reimbursement to pay for off campus housing. However, the refund check didn’t come early enough to pay for the housing when the rent was due, so we (parents) fronted that money to her & she paid us back when she got the refund check.
And OP- you probably know this but for the benefit of those who do not-
When your kid is eligible for work-study, that does NOT mean that money is disbursed to your kid at the beginning of the semester. Work-Study is just like a regular job- you work the hours, you collect your paycheck at the end of the pay period (or direct deposit). A kid who decides to work 6 hours a week instead of 10- for example- is going to earn less than the full amount over the semester, all things being equal.