Understanding Non-Billable Items in College Expenses
Navigating the costs of college can be overwhelming. While tuition, fees, and room and board often take center stage, there's a significant category of expenses known as "non-billable items" that students and their families need to understand and budget for. These are costs associated with receiving an education that are not directly charged by the school. Being aware of these costs will help you budget more effectively, as you can anticipate what you might need in extra funds throughout the academic year.
What are Non-Billable Items?
Non-billable costs, also referred to as indirect, non-billable, or additional costs, are other expenses not paid directly to the school but associated with receiving an education. The Cost of Attendance consists of the sum of educational costs payable to the school (also referred to as direct or billable costs) and costs paid to others (or indirect, non-billable or discretionary) costs. These expenses are estimated by the school and may differ from student to student based on their individual circumstances. Colleges provide estimates to give students a comprehensive view of the total cost of attendance (COA). The COA includes billed costs (tuition, fees, housing, and food), approved non-billed costs (books and supplies, travel, and personal expenses), and Direct Loan origination fees.
To calculate the amount of financial aid you’ll need, start with the Cost of Attendance (how much you’ll be paying to live for the academic year) and then subtract your Expected Family Contribution (the amount that your family has been calculated to be able to contribute based on the information you provided on your FAFSA and CSS Profile). Starting in the fall of 2024 the Expected Family Contribution (EFC), is now called the Student Aid Index (SAI). The remaining amount is the total of financial aid you may receive.
That’s because this figure includes estimates of expenses that you will likely incur throughout the school year that are not billed directly by the college.
Common Non-Billable Expenses
Several categories typically fall under non-billable items:
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Books and Supplies: Book prices for classes vary based on college and major, and some can cost several hundred dollars. Check with the college to find out what the average student spends on textbooks each year to be prepared. To save on costs, consider renting textbooks, buying your books used, or purchasing digital versions. Even in the age of technology, notebooks, pens, highlighters, and numerous other school supplies are still used by students at college.
Technology: Many schools require a laptop, so do your research before classes begin. Some colleges offer laptops to students, either for free or charged to your student’s account at a discount, but others don’t, so be prepared based on the school’s policy.
Course-Related Expenses: Even though you’re already paying tuition, classes can still require additional purchases.
Transportation: If your child attends college in a city, then they may need some type of bus or subway pass to get around. Most transportation systems offer student discounts, so check online for details. If your child plans to bring a car to campus, then find out the college’s policy on parking passes and fees.
Student Activities: Intramural sports, arts groups, sororities/fraternities, and other student organizations often require an annual fee to help offset costs and pay for group events.
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Travel: If your child plans to take a spring break trip or study abroad for a semester, travel expenses are guaranteed. Try to get an idea of your student’s plans for the year before the fall semester begins. Travel costs can also vary significantly depending on how far your student’s college is from your home. If you’re within driving distance, then a bus is usually a financially savvy option.
Dorm Supplies: If your child plans to live on campus, then they will need supplies to outfit their dorm. Most dorms come with only the bare minimum: a bed, dresser, and desk. Students typically need to provide their own bedding, TV, appliances, and any sort of decoration.
Financial Aid and Non-Billable Items
When colleges calculate financial aid packages, they consider both billable and non-billable costs. The Free Application for Federal Student Aid (FAFSA) is a crucial document in this process. The Department of Education requires families to file a FAFSA in order to be eligible for federal aid programs, including Unsubsidized Direct and Parent PLUS Loans. The FAFSA may be completed after October 1st of the aid year (the 24-25 FAFSA will not be availabel until December 2023). Some states use the FAFSA as their application for state grant money; check here for your state’s deadline.
The FAFSA collects financial information to determine the Student Aid Index (SAI), which is used to determine your eligibility for federal, and in some instances, state and institutional need-based student financial aid. Generally, students with a higher SAI are eligible for less need-based financial aid. The SAI will replace the EFC starting with the 2024-25 FASFA as the eligibility index used to determine your eligibility for federal, and in some instances, state and institutional need-based student financial aid. Generally, students with a higher EFC are eligible for less need-based financial aid. The result of calculations determining a family’s financial strength. EFC typically includes parent and student contributions, based on a number of factors. Household size, number of children in college, annual gross income, certain untaxed income, assets and investments are some of the data items considered.
Types of Financial Aid
Financial aid can come in various forms:
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Grants and Scholarships: Any money provided to students that does not have to be repaid. They can be called grants, scholarships, tuition remissions, gift aid, or tuition waivers. A form of grant money awarded based on demonstrated academic achievement, community involvement, and extracurricular talent. Merit scholarships are not need-based.
Federal Pell Grant: The Pell Grant is a federal grant program designed to assist undergraduate students in low- and moderate-income households to pay for college.
Federal Supplemental Education Opportunity Grant (FSEOG): A federal grant provided by the institution to qualified undergraduate students who demonstrate exceptional financial need and does not need to be repaid.
Federal Work-Study: Federal Work-Study provides funding for part-time jobs for undergraduate and graduate students with financial need.
Federal Direct Loans: Educational loans backed by the US Government through the Department of Education. To apply, you must complete a FAFSA and meet basic eligibility requirements. Borrowing limits vary by academic year.
Direct Subsidized Loan: A undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period.
Direct Unsubsidized Loan: An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins.
Direct Graduate PLUS Loan: Federal loans that graduate or professional students use to help pay for education expenses. A credit check for adverse credit history is required for eligibility.
Direct Parent PLUS Loan: Federal loans that parents of dependent undergraduate students can use to help pay for education expenses.
Private Educational Loans: A student or parent loan from a bank, credit union, private company, a nonprofit or state-affiliated lender, or from the college or university directly to pay for educational costs. Available through private lenders such as banks and credit unions, these loans provide financing options to families paying for higher education.
Understanding Your Financial Aid Offer
A financial aid offer is a document sent by a postsecondary institution to a student that outlines the amounts and details of the financial aid being offered to the student, which may include scholarships, grants, loans, employment, or other forms of financial assistance to pay for college expenses. Sometimes schools refer to these as financial aid “awards”, although this term is outdated. Provided that you’ve submitted all documents necessary as listed on your MySlice Financial Aid To Do List, your financial aid will appear on your bill as “anticipated financial aid”. Around the time classes begin for the semester, almost all of your financial aid is transferred to your Bursar account. Your financial aid is first used to cover any charges on your Bursar account (tuition, fees, residence hall, and meal plan). You can fill out a refund request form to let the Bursar know where you want the refund to go and how you want it to get there. The Bursar usually sends out these refunds about 10 days after classes start. Syracuse University offers other payment options including a monthly payment plan.
Additional Terms to Know
Academic Year (AY): The enrollment period for which aid is awarded.
CSS Profile: Available from the College Board, this document collects additional financial and household information. We use the CSS Profile when we determine a student’s eligibility for Dickinson grant money.
Data Retrieval Tool: Also referred to as the IRS DRT. The Data Retrieval Tool is a feature of the FAFSA which allows applicants to import their finalized federal tax information from a previous year. The IRS DRT is not available for all filing situations, but many families will find it reduces the time they spend completing the FAFSA. Successful use of the IRS DRT can be accepted in lieu of a paper Tax Return Transcript for those families whose applications have been selected for Verification. The system replacing the IRS Data Retrieval Tool (DRT) to transfer an individual’s FTI to the Department.
Demonstrated Need: We calculate your aid eligibility by looking at the difference between budgeted student costs, and the strength of your family’s financial resources. The formula is Cost of Attendance (COA) minus the Student Aid Index (SAI) equals Demonstrated Need. Need-Based Aid is financial assistance offered on the basis of a family’s demonstrated need. Toward the end of the admissions process, we find it most reasonable to be sensitive to need as we select candidates for admission.
Dependent Student: On the FAFSA, a dependent student must report parent financial information.
Enrollment Status: The number of credits, clock hours, or classes the student is enrolled in, or whether they have withdrawn, graduated, etc. Enrollment status affects eligibility for and the amount of financial aid a student may receive.
Family Grid: Provides information on household size and the number of students in college.
Federal Tax Information (FTI): Is the data and information related to federal tax paying. 6103(l)(13). FTI also includes any information created by the recipient that is derived from a federal return or return information received from the IRS or obtained through an authorized secondary source.
FUTURE Act Direct Data Exchange (FA-DDX): The system replacing the IRS Data Retrieval Tool (DRT) to transfer an individual’s FTI to the Department.
Independent Student: On the FAFSA, an independent student is not required to report parent financial information.
Master Promissory Note (MPN): The document you must sign prior to obtaining a student loan. The MPN will outline the terms of the loan including the interest rate, loan period, repayment guidelines, and much more.
Net Price: The difference between the cost of attendance and all grants and scholarships.
Net Price Calculator: Provides an estimate of your need-based aid eligibility at Dickinson.
Non-Custodial Parent Statement: If your natural parents are divorced, your custodial parent’s information will be included on the FAFSA and CSS Profile.
Other Funding Options: Funding options outside of grants and scholarships that a student and their family may use to pay any remaining costs or expenses.
Prior-Prior Year: Started in 2017-2018, the FAFSA began collecting federal tax data from two years prior. Therefore, for the 2024-2025 academic year, the FAFSA calculation will be based on 2022 tax returns, but will still request information on current assets, household size, and number of students in college.
Tax Return Transcript: The official receipt of tax return processing from the IRS. A transcript is available based on calendar year.
Title IV Eligible: Determines if the student and the institution are eligible to receive federal need-based financial aid. citizenship or eligible non-citizenship, and more.
Verification: A federally mandated process to confirm the accuracy of data provided by selected applicants on the FAFSA. To complete the verification process, the student, their parent(s), or spouse, if applicable, are required to provide certain documents to the school for review.
Budgeting for Non-Billable Items
Since non-billable items are not directly charged by the college, students need to proactively budget for these expenses. Here are some tips:
Consult College Estimates: Check with a college directly to get an accurate estimate of what students typically spend for their non-billed expenses.
Track Expenses: Monitor spending throughout the academic year to identify areas where you can cut back.
Explore Cost-Saving Options: Consider renting textbooks, using public transportation, and buying used dorm supplies. To save on costs, consider renting textbooks, buying your books used, or purchasing digital versions.
Create a Budget: Develop a detailed budget that includes both billable and non-billable expenses.
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