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Question of the week

Q.: How does a school handle Stafford and PLUS loans for a student who is already receiving Stafford and PLUS loans at another school? Specifically, what components of the cost of attendance (COA) can a school include to calculate the student's loan eligibility?

A.: A student attending two schools has two tuition and fee bills, two sets of books and supplies expenses, and, if borrowing at both schools, two sets of loan fees. However, the student typically has only one set of room and board, transportation, and miscellaneous personal expenses. Therefore, one school should remove these costs from its COA. See the side bar "Stafford/PLUS at multiple schools" on page 3-78 of the 2007-08 Federal Student Aid Handbook:

"The schools that the student is attending are responsible for coordinating to make sure that the total amount of the loans the student receives does not exceed the applicable annual loan limit. In addition, the schools must ensure that there is no duplication of non-institutional costs when determining the student's cost of attendance. (Note that loan funds awarded at one school are not to be included as estimated financial assistance by any other school the student is attending when determining the student's loan eligibility for the same period.)"

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