Can Financial Aid Pay for Student Apartments?
Financial aid calculations consider the cost of a student's housing, whether in university housing or in apartments near the school. Therefore, students who would prefer to live in apartments can use their financial aid to pay rent and related costs, just as they would use the aid to pay for housing on campus.
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Cost of Attendance
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Financial aid calculations consider the cost of attendance at a school when determining a student's financial need. The cost of attendance includes not only tuition and fees, but also housing, food, textbooks and school supplies. Schools often use the same cost of attendance for students living on campus and those in apartments nearby. A student whose expected family contribution is less than the cost of attendance will likely receive financial aid to help bridge the gap.
Paying for Apartments
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Financial aid is generally applied to on-campus bills first before becoming available for the student to use for other expenses. Students will only get financial aid for off-campus housing if the expected family contribution is less than the cost of off-campus expenses. If the tuition and fees total $18,000, and a student receives $20,000 in financial aid, the first $18,000 of financial aid will go toward tuition and fees.
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Getting Money
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Students who have financial aid awards that exceed the on-campus costs receive the excess money from the school's financial aid office each academic term. Financial aid sources, including the federal government, state agencies and private lenders, send grant and loan money to the financial aid office each term. After applying aid to the student's tuition and fees bill, the office disburses the remaining funds to the student as a check. Each school has its own rules on when to issue the check, but it generally ranges from a week before the term begins to the end of the drop/add period. The student can then use this money for other costs of attendance, including rent for an apartment.
Considerations
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Depending on the type of student apartment and the cost of living in the area, students can sometimes save money by living in an apartment instead of staying on campus in the dorms. This is because financial aid calculations include a fixed amount that the student is expected to pay on housing and food. If the student finds an apartment for less than that amount, the student can reduce his out-of-pocket expense or choose to take out fewer student loans because he doesn't need the full amount.
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