COA

New stipends put spotlight on colleges’ math

Finance, Football, Governance

COA

The start of a new school year ushers in a new financial reality for college athletic departments and, with it, questions about the hot new statistic in college sports: cost of attendance, or COA.

Schools use cost of attendance to determine a student’s need for financial aid, and federal law dictates the types of expenses that can be taken into account when a financial aid department determines its COA figure for the academic year. Athletic departments have traditionally provided grants-in-aid to cover a majority of COA components — tuition, books, room and board — but NCAA rules have prohibited them from covering travel/transportation and personal and miscellaneous expenses.

In January, however, the power five conferences — the ACC, Big 12, Big Ten, Pac-12 and SEC — granted the ability to offer student athletes stipends to cover the full cost of attendance, and the other Division I football conferences followed suit.

And that’s where the questions come in. The methods that financial aid offices use to determine figures for travel and personal expenses differ from school to school. Different methods mean some schools offer larger stipends than others, creating a new point of differentiation in the hypercompetitive world of college athletics recruiting.

The change sparked a debate about whether the system could be manipulated to provide higher COAs, and the accompanying recruiting advantage, for some schools.

Click here to continue reading my piece in last week’s SportsBusiness Journal (no subscription required).

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