How To Pay For Off-Campus Housing With Student Loans. Direct loans, as an example, are given to a college student as a direct deposit, to use as they see fit. If you live in a dorm, it’s considered a direct cost and is covered by your student loan before you receive your disbursement. These are the monthly amounts a student receives based on the cost of shelter, food, miscellaneous expenses and public transportation in their province or territory. Federal student loans, sometimes called Direct Loans, Stafford Loans, or Perkins Loans, can be used to pay for education-related expenses. Student loans are meant to cover your entire cost of attendance (COA), which goes beyond tuition and fees to include all expenses that come with enrolling in school. Living expenses can also vary greatly depending on where you live and whether you attend an urban school (where housing tends to be more expensive) or a rural school. Tips For Spending Student Loans For Living Expenses Now that you know that you can spend student loans for living expenses, it’s time to think strategically about how to use it. Yes, you can take out a student loan for living expenses. Actual monthly allowance by province/territory. If your student loan lender finds out you’re misusing funds, such as by paying for spring break trips or bar-hopping, it’s possible your loan could be terminated and you could be forced to pay back the full amount borrowed. What not to spend your student loan refund on. The type of student loan you receive will determine your eligibility for paying for off-campus housing. Direct loans, as an example, are given to a college student as a direct deposit, to use as they see fit. When using your student loan to pay for rent, look for an apartment that is decent but not extravagant. With the average 2016 graduate carrying over $37,000 in student loan debt, it’s a problem many recent and soon-to-be graduates face. Student Loans to Cover Living Expenses When you are in college it feels like you have even more expenses than you have ever had! Graduate PLUS Loans. The type of student loan you receive will determine your eligibility for paying for off-campus housing. Knowing how to pay for college is partly about saving where you can — and room and board represents a big opportunity to trim. These expenses are included in your school’s published cost of attendance (COA), often referred to as a student budget. It was responsible for about 43% of the cost of attending an in-state public college or university in 2017, according to the College Board. Abusing excess student loan money will … To use either type of loan to pay for other living expenses, you should understand what is covered. If you’re living off campus, the school will estimate “reasonable expenses… When it comes to spending student loans on housing and food, your cost of university attendance will depend on whether you’re living at home with your parents, in campus housing, or in an off-campus apartment or house. How It Works. Learn how to pay for college by trimming housing costs. Yes, all the expense are covered are by the financial lender. How To Pay For Off-Campus Housing With Student Loans. The story usually starts with how excited they were to get into a private college, but they were bummed out that their family couldn’t afford to help them pay for school. Below are some qualified expenses that student loans generally cover. With a private student loan, you can cover up to 100% of your cost of attendance*. Student loan debt is a well-documented problem in our society. But if you live off campus, it’s your responsibility to find and pay for housing yourself. For federal and private student loans, you should use loan money only for qualified expenses. You can also use student loans for living expenses. Graduate PLUS loans help cover other eligible educational costs, such as basic living expenses. These expenses are included in your school’s published cost of attendance (COA), often referred to as a student budget. Federal student loans, sometimes called Direct Loans, Stafford Loans, or Perkins Loans, can be used to pay for education-related expenses. Stafford loans can be used to pay for living expenses such as housing. Student living allowances for school year 2018 to 2019. Paying for rent, food, transportation and other necessities are all legitimate ways to use a student loan. You’re limited to borrowing the school’s cost of attendance — that’s tuition and fees, books and supplies, room and board, transportation, and personal expenses —minus any aid you receive. You can use excess proceeds from federal Stafford and Perkins loans and from a Parent Loan for Undergraduate Students -- as well as loans from private lenders -- to pay rent and utility expenses relating to off-campus housing. Student loans will rarely cover expenses like off-campus housing costs.Most student loans are allocated in the sum needed for tuition for a given term. Between tuition costs, books and dorm fees; there are still the day-to-day living expenses that students find themselves facing. Use your student loan refund to cover you housing, but keep it simple. But they will not loan me more than the difference between my Stafford loans, and the U of Louisville "Cost of Education." When I talk to people about their out of control student loan debt, one of the first reasons they give for why is this: they used their student loans to pay for living expenses.