Which of the following is an allowable adjustment within a student's COA?

• A. Test prep class costs
• B. Purchase of a personal car to use during the academic period
• C. Documented rental or purchase of a personal computer
• D. Entertainment expenses

Answer: (C)

The main idea is that a COA adjustment should reflect expenses that directly enable a student to participate in and complete their education. A personal computer is a tool many courses rely on for online access, software, research, and completing assignments. When the school or aid program documents that a computer is required for the student's program, its cost can be included as an education-related expense in the COA. That makes it an allowable adjustment.

In contrast, costs tied to test prep are not expenses required by the program itself; they’re general personal development costs, not essential to the specific coursework. Entertainment expenses are clearly discretionary and not tied to pursuing a degree. A personal car, while it could affect a student’s transportation, is typically treated as a large personal asset rather than an ordinary education expense, and transportation costs are handled differently in a COA; a car purchase for the academic period isn’t normally an allowable COA item unless there is very specific, documented justification tied to the program.