This	restriction	applies	to	both	clock-hour	and	credit-hour	programs.	For	example,	some	clock-hour	programs	assess
<overtime	charges=	for	students	who	don9t	complete	their	programs	within	an	established	timeframe.	Some	credit-hour
programs	charge	additional	tuition	or	fees	for	each	course	a	student	takes	if	the	student	fails	to	complete	a	program
within	an	established	timeframe.	In	both	cases,	such	charges	may	not	be	counted	in	the	Title	IV	COA,	and	Title	IV	funds
may	not	be	used	to	pay	for	the	additional	charges.
Finance	Charges
You	may	not	use	
Title	IV	funds	to	pay	finance	charges	or	fees	that	are	incurred	because	a	student	uses	a	financing
method	provided	by	the	school	to	pay	for	educational	expenses	over	time.	Because	students	or	families	choose	to	incur
these	additional	expenses	rather	than	paying	the	balance	due	at	registration,	the	additional	charges	are	not	considered
educational	expenses,	and	may	not	be	included	in	a	student9s	cost	of	attendance.
As	an	example,	consider	a	school	that	charges	full-time	students	$10,000	per	semester	in	tuition,	payable	either	at
registration,	or,	under	an	optional	payment	plan,	in	four	payments	of	$2,600	each	over	the	course	of	the	semester,	for	a
total	of	$10,400.	The	school	may	offer	the	optional	payment	plan	but	can9t	use	Title	IV	funds	to	pay	for	the	$400	in
additional	costs	incurred	by	students	or	families	who	opt	to	use	the	plan.
Test	Prep	Class	Costs
You	may	not	include	the	costs	of	a	test	prep	class	that	is	not	part	of	a	student's	eligible	program	in	the	student9s	COA.
Prohibitions	on	Charging	Fees	and	Penalties
You	may	not4
Request	from	or	charge	any	student	a	fee	for	processing	or	handling	any	application,	form,	or	data	required	to
determine	eligibility	for,	and	amount	of,	Title	IV	HEA	program	assistance;	or
Impose	any	penalty	on	a	student	because	of	a	student9s	inability	to	meet	their	financial	obligations	to	the	school	as	a
result	of	the	delayed	disbursement	of	the	proceeds	of	a	Title	IV	loan	due	to	compliance	with	Title	IV	requirements,	or
delays	attributable	to	your	school.
Costs	for	Checking	Foreign	Diplomas
If	you	hire	a	transcription	or	diploma	evaluation	service	to	aid	in	the	process	of	determining	student	eligibility,	the	cost	of
evaluating	a	foreign	credential	must	be	incurred	as	a	charge	of	admission	prior	to	a	student's	enrollment	in	an	eligible
program	and	thus	cannot	be	included	in	the	student9s	COA.	For	more	detail	on	checking	foreign	diplomas,	see	
Volume	1,
Chapter	1.
Documentation	of	Exceptional	Expenses
The	law	doesn9t	specify	what	documentation	you	must	collect	for	expenses	such	as	dependent	care	or	disability-related
expenses.	You	can	document	these	expenses	in	any	reasonable	way,	such	as	documenting	an	interview	with	the	student
or	obtaining	a	written	statement	from	the	student	or	other	appropriate	sources.
NCAA	Considerations
The	<Power	Five=	conferences	(The	ACC,	Big	Ten,	Big	12,	Pac	12,	and	SEC)	of	the	National	Collegiate	Athletic	Association
Prohibitions	on	Charging	Fees	and	Penalties
34	CFR	668.14(b)(3)
34	CFR	668.14(b)(21)
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