The Important Things to Know About Using Student Loans for Housing
We all know the classic trope of the broke college student, living off ramen in a roach-infested dorm for four years. However, such situations are not as prevalent as popular culture might have you think, thanks largely to the greatly improved quality of both on and off-campus accommodation aimed at students.
More importantly, widening access to loans that are sufficient to cover the costs of quality housing has also helped to improve student living standards.
However, many first-time students may be concerned that they cannot or will not be able to pay use student loans for housing. Let’s clear that up right now.
Can You Use Student Loans for Housing? Yes, You Can.
The short answer is yes. You absolutely can use student loans for housing and living expenses. Whether you’re receiving federal or private loans, the lender will not be checking how you are spending it.
The money you are eligible will first go to your university, where tuition costs are taken out. The remaining sum is then deposited directly into your bank account.
You do not need to report how you spend, and you are free to spend it on accommodation as you see fit.
How to Use Your Loan Money for Accommodation
If you’re wondering how to actually use campus loans to pay for housing, there are a couple of things you should know. First of all, if you receive your loan money in a single installment once a semester, you may want to find an accommodation option that fits with your cash flow.
For example, Tallahassee student housing will allow you to pay your rent per semester, rather than every month like you would in a ‘grown-up’ apartment.
This is essential, as it gives you a better idea of how much money you’ll have leftover while guaranteeing a roof over your head throughout college.
Second, it bears repeating that the amount you think you are going to receive is not necessarily the amount that will land in your bank account.
Tuition will always be deducted from your school first. This means that if you are told you will receive $7500 per semester, but tuition is $5000 per semester, then you will have $2500 leftover.
Budgeting is Key
This is why solid budgeting and a smart approach to student housing loans is important. While quality accommodation is crucial, do not live beyond your means. There is no need to live in a luxury apartment with a swimming pool as a student.
Shop around for on and off-campus accommodation to find the best deal for you. Also, when using student loans for living expenses off-campus, don’t forget to think of the bigger picture.
Poor health and poor living situations can affect your studies and your medical situation. Use your loan money wisely and take the time to budget for a nutritious diet, safe accommodation, and stress reduction.
Learning how to use student loans or housing is the first step in a well-budgeted and balanced college experience. Make sure to read our Economics of University Guide to learn more about making your money go further.