## Figuring out Total COA

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WanderingPondering

Posts: 444
Joined: Tue Aug 07, 2012 10:47 am

### Figuring out Total COA

Why is the total non-discounted cost not just full tuition+indirect expenses *3 (plus inflation/tuition hikes)??

I am looking on LST, and for example BU costs 42,000 Anne has expenses listed as 17,000. So why is the total coa listed as 225,000 instead of 59,000*3??

Am I missing something obvious? Is it assuming you are financing the degree completely with loans at 8%??

Tiago Splitter

Posts: 17152
Joined: Tue Jun 28, 2011 1:20 am

### Re: Figuring out Total COA

WanderingPondering wrote:Why is the total non-discounted cost not just full tuition+indirect expenses *3 (plus inflation/tuition hikes)??

I am looking on LST, and for example BU costs 42,000 Anne has expenses listed as 17,000. So why is the total coa listed as 225,000 instead of 59,000*3??

Am I missing something obvious? Is it assuming you are financing the degree completely with loans at 8%??

The number is what you'll be at if you borrow the full COA (with tuition increases) and don't start paying those loans until 6 months after graduation.

jenesaislaw

Posts: 1007
Joined: Mon May 19, 2008 6:35 pm

### Re: Figuring out Total COA

The formula uses the right interest rate for each loan you take out on a semester-by-semester basis.

bernaldiaz

Posts: 1674
Joined: Sun Apr 24, 2011 12:51 am

### Re: Figuring out Total COA

WanderingPondering wrote:Why is the total non-discounted cost not just full tuition+indirect expenses *3 (plus inflation/tuition hikes)??

I am looking on LST, and for example BU costs 42,000 Anne has expenses listed as 17,000. So why is the total coa listed as 225,000 instead of 59,000*3??

Am I missing something obvious? Is it assuming you are financing the degree completely with loans at 8%??

Using your BU example, they actually explain it nicely on their website.

http://www.bu.edu/law/prospective/finan ... alculator/