Introduction
In this article, we’ll look at some common questions surrounding student loans. We’ll answer whether you can use your loan money to pay for housing, how much you can borrow, and how it’s applied to your account. Overall, this begs the question, Can Student Loans be Used for Housing?
This depends on the type of loan you have
If you have a subsidized Federal Stafford loan, the answer is no. This means that if you’re using the student loan money to pay for housing and you have a subsidized Federal Stafford loan, the government will pay off all of your interest while you are in school.
To be clear: If you have an unsubsidized Federal Stafford Loan, it’s not that your money won’t work for housing—it just means that when it comes time to pay back those loans (and their associated interest), that amount will be deducted from whatever future income you earn as a result of getting your degree.
If instead of having a subsidized or unsubsidized Federal Stafford Loan, your student loans were funded by something called a Perkins Loan then yes! You can use them for housing because these types of loans don’t require any kind of repayment until after graduation when they must be repaid in full with interest added on top (meaning this is an ideal type of loan if what matters most is how much money students will owe after graduation).
If you have a subsidized Federal Stafford loan, the answer is no
If you have a subsidized Federal Stafford loan, the answer is no.
If you have an unsubsidized Federal Stafford or Grad Plus loan or any other type of federal student loan, you can use your money to pay for housing. However, if you do that, then it will be considered a miscellaneous expense and will not be eligible for interest deferment or forbearance.
In order to qualify as housing expenses: The money must be used to pay for rent or mortgage payments on your house or apartment; utilities like gas and electricity; insurance on your home (homeowner’s insurance); repairs to fix damage from natural disasters such as earthquakes and floods; improvements such as repairing faulty plumbing systems—and moving expenses when relocating from one residence to another due to foreclosure/eviction proceedings against the property in which one resides at that time.[2]
It does not matter what type of housing it is
Student loans can be used for housing regardless of the type. Whether you are renting or buying, it does not matter; you can use student loans to pay your rent or mortgage.
Furthermore, whether you live in a public structure like an apartment building or a private structure like a house matters little as well. If you live on campus and are paying for your dormitory room with student loans, they will go toward that expense as well.
You cannot use any of your loan money for rent, food, or anything else
Student loans are meant to be used for school-related expenses, not rent or food. The only way you can use your loan money for anything other than school-related expenses is if you go into default on the loan. If that happens, student loans can be used as payment for debt collection and other fees associated with the defaulting loan.
If you cannot afford rent, food, and transportation costs, then consider applying for financial aid. You may qualify for free money from the government based on your income level and family size.[1]
The same applies if you have an unsubsidized Federal Stafford Loan
The same applies if you have an unsubsidized Federal Stafford Loan. You can use the loan money for housing, but not for rent or food. You can use the loan money for tuition and fees, but not for course materials. You can use the loan money for books and supplies, but not for travel expenses.
Even if you’re on a tight budget, your student loan money should only be used for tuition, fees, and course materials
If you’re on a tight budget, your student loan money should only be used for tuition, fees, and course materials. You can’t use it to pay rent or buy food. Student loans are not meant to be used for anything other than school-related expenses.
If that sounds like a lot of rules, that’s because it is! The last thing you want is to get in trouble with the government by misusing your student loan funding.
If your parents took out a parent PLUS loan to pay for your education costs, they can use the proceeds to help cover the cost of your rent
If your parents took out a parent PLUS loan to pay for your education costs, they can use the proceeds to help cover the cost of your rent.
Parent PLUS loans are available to parents of students who need help paying for college. The government will allow parents to borrow as much as they need—up to the total cost of attendance minus any financial aid they’ve received. Parents should not use their own funds or any other money that’s not directly related to educational expenses on anything else (with some exceptions).
However, they should not use the proceeds to pay for anything that is not directly related to your education
However, they should not use the proceeds to pay for anything that is not directly related to their education. You do not have access to the money until after you graduate and begin working. This means that parents cannot use these funds to help cover the cost of their rent or mortgage payments while in school.
If you can’t afford to pay for your housing costs out-of-pocket, you may want to consider applying for financial aid from the federal government and your school
If you cannot afford to pay for your housing costs out-of-pocket, you may want to consider applying for financial aid from the federal government and your school.
- Apply for a student loan. Many students have successfully paid for college by borrowing money from the federal government through Stafford Loans or Perkins Loans. These loans are available to all students regardless of income or credit history. You can apply online at www.studentaid.ed.gov/PORTALSWebApp/students/english/english_index.jsp
- Consider applying for a grant instead of loans if possible because they do not need to be repaid as loans do and there is no interest on them like there is on loans (Scholarships 101: Grants vs Loans). If you receive one of these types of awards, it could help pay off part or even all of your housing expenses while in school! Check out our article on how much are grants and scholarships worth.
- Your college may also offer work-study programs that allow students who accept part-time jobs during the school year or summer break where some earnings from those jobs go toward paying off their tuition bills (or other expenses) during those specific periods; check with your local financial aid office about whether this type opportunity would be available where you attend school before committing yourself 100% full time though because sometimes those positions fill up fast so don’t miss out! There may also be some stipends available through competitive grants awarded by individual departments within institutions; see if yours has any funds set aside specifically for this purpose too!
Student loans are meant to be used for school-related expenses.
Student loans are meant to be used for school-related expenses. Student loans are not meant to be used for rent, food, or anything else. You can use your student loan money for housing if you live in an on-campus dormitory or if the school provides housing for students in their programs, but other than that, student loans cannot be used toward your rent or any other living expenses outside of tuition.
Conclusion
If you need help paying for your housing costs, you may want to consider applying for financial aid from the federal government and your school. You can also speak with a representative of your loan provider who can assist you with finding more affordable options that do not require a student loan.