What is the significance of the term "cost of attendance" (COA) in financial aid?

The term "cost of attendance" (COA) is significant in financial aid as it encompasses a comprehensive estimate of the total expenses that a student may incur while attending school. This includes not just tuition and fees, but also a wide range of additional costs such as living expenses, books and supplies, transportation, and personal expenses. By calculating the COA, schools and financial aid offices can determine the maximum amount of financial aid a student may receive. This holistic approach ensures that students are aware of the full financial picture of their education, enabling better financial planning and support for their educational goals.

In contrast, the other options offer limited definitions that do not capture the full scope of what COA represents. Focusing solely on tuition fees or just living expenses would not provide a complete understanding of the financial commitment required for attending school. Additionally, while COA may vary by institution, it is not a fixed amount but rather a dynamic estimate based on various factors including living situation and program of study. Thus, option B correctly clarifies that COA represents the total estimated expenses a student incurs while attending school.