Can You Get a House Allowance on a School Loan With FAFSA?
Higher education students can obtain financial aid to cover housing expenses. The Free Application for Federal Student Aid, commonly known as the FAFSA, is the government portal in the United States for applying for financial aid. Colleges and universities usually require students to fill out the FAFSA. Each institution has its own deadline for students to submit the FAFSA in order to receive priority funding.
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Types of Aid
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Federal aid is divided into three general categories: grants, loans and work-study. Grants are issued on the basis of financial need. The FAFSA calculates the student's Expected Family Contribution (EFC), which is the amount of the student's educational costs for which the household is obligated to pay. Grants are usually awarded to undergraduate students and do not have to be repaid. Students may also qualify for loans and work-study. Loans do have to be repaid. Work-study allows students to work on-campus and receive pay which they can use to cover expenses.
Disbursement
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When a student receives financial aid, he does not receive a paycheck in the amount for which he qualified. The educational institution is the recipient. The school's financial aid office creates the student's financial aid account, which documents all costs and fees associated with the student by term. If the amount of financial aid is greater than the costs and fees for the term, the student is issued a refund.
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On-Campus Housing
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On the FAFSA, you are required to indicate whether or not you intend to live on- or off-campus. Living on-campus means that you live in a residential complex owned and operated by the educational institution, such as a dormitory or university owned apartment complex. It is important to indicate whether or not you want to live on-campus when you file the FAFSA, because space in the dormitories may be limited. If a student lives on-campus, the cost of housing is included in the costs and fees of education for the aid term.
Off-Campus Housing
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If a student chooses to live off-campus, the short answer is that she will be able to receive a housing allowance. But this housing allowance will not allow the student to be picky about her living preferences. The amount of money that is allocated to an off campus student for housing and food will be based upon calculations of cost of living. It will basically allow the student to live as frugally as possible on her financial aid money. Some students may find that they simply cannot pay the rent without roommates or an extra job. Off-campus students receive financial aid refunds to pay for expenses.
Other Housing Arrangements
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If the student lives with her parents, the student will probably not receive any extra money from financial aid that could pay for housing. The exception to this would be students who receive generous stipends from their schools for outstanding academic performance. Moving in with the parents can be a good way for students to save money and reduce their debt.
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