to	receive	the	loans	(for	example,	the	loan	fee	for	a	Direct	Loan).	Fees	for	non-federal	student	loans	may	not	be	included.
You	may	use	either	the	actual	loan	fees	charged	to	the	student	or	an	average	of	fees	charged	to	borrowers	of	the	same
type	of	loan	at	your	school.
COA	for	Correspondence	Students
For	students	engaged	in	correspondence	study,	COA	is	limited	to	tuition	and	fees	and,	if	required,	books,	course
materials,	supplies,	and	equipment.	If	the	student	is	fulfilling	a	required	period	of	residential	training,	the	COA	also
includes	an	allowance	for	travel,	and	food	and	housing	costs	specifically	incurred	for	the	period	of	residential	training.	As
explained	in	
Volume	1,	Chapter	1,	a	student	isn9t	eligible	to	receive	Title	IV	aid	for	correspondence	courses	unless	the
student	is	enrolled	in	an	associate,	bachelor9s,	or	graduate-degree	program.
COA	for	Incarcerated	Students
For	confined	or	incarcerated	students,	COA	is	limited	to	tuition	and	fees,	required	books,	course	materials,	supplies,	and
equipment,	and	the	cost	of	obtaining	a	license,	certification,	or	first	professional	credential.	Remember	that	an
incarcerated	student	is	ineligible	for	Direct	Loans.
Additional	COA	Considerations
Periods	of	Non-Attendance
You	may	not	include	in	a	student9s	COA	costs	(if	any)	for	a	period	of	non-attendance.	A	period	of	non-attendance	is	a
period	during	which	the	student	is	not	enrolled	and	is	not	otherwise	engaged	in	any	activity	that	is	a	requirement	of	the
student9s	program	of	study.	For	example,	if	a	student	does	not	attend	a	module	in	a	term	that	is	divided	into	multiple
modules	or	does	not	attend	an	intersession	that	falls	between	two	terms,	you	may	not	include	any	costs	associated	with
that	module	or	intersession.	This	applies	even	if	the	module	or	intersession	forms	part	of	a	standard	term	in	which	the
student	is	otherwise	enrolled	(see	Chapter	1	of	this	volume	for	more	information	on	the	treatment	of	modules	and
intersessions),	or	if	the	student	is	studying	for	a	test	or	coursework	related	to	an	eligible	program	during	the	period	of
non-attendance	(though	the	costs	of	such	a	test	itself	may	be	an	allowable	COA	component4see	<Costs	of	Obtaining	a
License,	Certification,	or	First	Professional	Credential=	earlier	in	this	chapter).
Adjustments	for	Special	Circumstances
You	have	the	authority	to	use	professional	judgment	to	adjust	the	COA	on	a	case-by-case	basis	to	allow	for	special
circumstances.	Such	adjustments	must	be	documented	in	the	student9s	file.	(See	<Professional	Judgment=	in	Chapter	5	of
the	
Application	and	Verification	Guide.)
Limitations	to	Tuition	and	Fees	Component
Tuition	Discounting
In	establishing	the	tuition	and	fees	component	of	the	COA	for	Title	IV	aid	applicants,	you	must	use	an	amount	that	is
required	for	all	students	in	the	same	course	of	study.	Therefore,	a	recipient	of	Title	IV	aid	cannot	be	assessed	charges	that
are	higher	than	what	is	charged	to	a	student	not	receiving	aid	under	the	Title	IV	programs.
Offering	a	discount	to	students	who	pay	early	is	not	permitted	because	Title	IV	recipients	may	not	be	able	to	(and	should
not	be	required	to)	meet	that	requirement,	and	therefore	students	who	do	not	pay	early	would	effectively	be	assessed	a
higher	tuition	amount	than	other	students.	Of	course,	it	would	be	permissible	for	you	to	provide	the	discount	to	all	Title	IV
eligible	students	without	regard	to	when	their	charges	are	paid.	However,	doing	so	would	require	an	adjustment	to	such
students9	COA.
Overtime	Charges
Some	schools	may	assess	overtime	charges	for	students	who	fail	to	complete	their	academic	programs	within	the	normal
time	frame.	Section	472	of	the	HEA	defines	COA	as	the	tuition	and	fees	normally	assessed	a	student	carrying	the	same
academic	workload	required	of	all	students	in	the	same	course	of	study.	Since	overtime	charges	are	not	charges	that	are
normally	assessed	(they	are	in	addition	to	normal	tuition	and	fees),	they	may	not	be	included	in	a	student9s	COA	for	
Title
IV	purposes,	and	therefore	Title	IV	funds	may	not	be	used	to	pay	overtime	charges,	even	if	a	school	obtains	a	student9s	(or
parent9s)	authorization	to	do	so.