How To Pay for Off-Campus Housing With Student Loans

Learn how to pay for off-campus housing with student loans, plus get tips for finding helpful financial aid and budgeting during your higher education. 

Securing housing is a key part of the college experience, but paying for off-campus accommodations can feel overwhelming. Fortunately, student loans can help cover the costs of living outside campus boundaries, giving students more freedom in choosing where they live. With the right plan, you can enjoy the independence of off-campus living while staying financially prepared for the future.

Curious about what expenses financial aid helps fund and how to find those resources? We’ve compiled several tips, best practices, and insights to help.

Paying for Off-Campus Housing

If you’re off campus, you’re in luck! Your student loans can typically cover off-campus housing costs since they fall under the cost of attendance. What is the cost of attendance, you might wonder? Basically, it refers to the estimated total expense a student will incur to attend a college or university for one academic year, which includes tuition, fees, room and board, books, supplies, and personal living expenses. 

Both federal student aid from your FAFSA and private loans can go toward these types of expenses, easing the burden of living costs during your college years. 

Here’s how to use your student loans for off-campus housing:

Estimate Your Housing Costs

First, determine how much your housing is going to cost. This amount will depend on what housing style you want — a single apartment, shared apartment, townhome, or rented home. Obviously, if you decide to have roommates, this can help lower the cost of living since you’ll split the rent. Additionally, think about utilities, groceries, and other bigger expenses that you’ll pay monthly. Once you have this total, it will guide your decision-making going forward. 

Check Your Financial Aid Award

With your total expenses in mind, review your financial aid award letter—the offer that tells you what financial aid you can receive—to understand how much money will be designated for living expenses. Look at both your federal and private loans to see if they provide enough coverage for your estimated housing costs. It’s also wise to consult your school’s financial aid office if you’re unsure how much is available for housing specifically, as each school allocates funds differently under the cost of attendance.

Receive a Refund for Housing

Your university will deduct your tuition costs and other related fees from your financial aid package. Then, they’ll send you any leftover loan money through direct deposit into a bank account or a check in the mail. This money can be used for rent, utilities, and other personal school-related expenses. 

Consider the Interest and Repayment Terms

Before committing to using your loans for housing, remember that any money you borrow will accrue interest. Federal loans typically offer lower interest rates and better repayment options, such as income-driven repayment plans, compared to private loans. Be mindful of how much you’re borrowing, as you’ll need to repay it after graduation. Minimizing your loan amount now can help reduce your financial burden later, so only borrow what you truly need.

Explore Grants and Scholarships If Necessary

If you’ve received your refund for housing and it’s not enough to cover your off-campus housing fully, you’ll need to look into other options like grants and scholarships to fill the gaps. Many colleges and private organizations offer housing-specific scholarships, which can provide extra support for rent and living expenses. Research both national and local scholarships, as well as any grants offered by your university, since even small awards can help make a difference.

Off-Campus Living Expenses Covered by Student Loans

When we say ‘off-campus housing expenses,’ we mean more than just the rent itself. There are many costs associated with renting away from your university, but only some of them can be covered by student loans. Let’s look at the breakdown of top living expense types to see what is and isn’t covered:

May Be Covered

• Rent: The flat rate you spend on rent monthly.
• Utilities: Your electric, gas, and water bills.
• Groceries and necessities: Food and other items like toiletries and cleaning supplies.
• Furniture and basic supplies: If living in an unfurnished space, basic furniture items like a couch and table, plus small kitchen utensils and basic appliances.
• Transportation: A bus pass, gas to get to school, and other school-related transportation.
• Renter’s insurance: Coverage to protect your rental property and items in the case of an unexpected incident.

Not Covered

• Non-essential furnishings or decor: Decorative elements that aren’t seen as necessary to your everyday living and well-being. 
• Entertainment and personal expenses: Anything that’s meant for entertainment and isn’t school-related, including music and streaming services, tickets to shows, gaming devices, and more.
• Non-education-related travel: Vacations and trips that aren’t for school.
• Security deposits: A returnable sum to cover any possible loss or damage, which can’t be paid for with student loans.
• Credit card payment or other debt: Existing debts of any kind.

Budgeting Tips for Students Living Off-Campus

Since student loans are intended to support academic-related expenses, make sure to use them carefully. Budgeting is crucial to ensure the funds last throughout the school year and are spent on qualified, necessary expenses. Here are some budgeting tips to help you make the most of your funds:

Create a Monthly Budget and Stick to It

This might seem like an obvious step, but creating a budget and actually sticking to it isn’t the same. You must use your budget as a non-negotiable, ensuring that you only spend what you’ve decided to. To create this plan, start by assessing your total monthly income, including your student loans, financial aid, job earnings, or allowances from your family. List all fixed expenses like rent, utilities, and transportation, then allocate what’s left to the less essential items. Track your spending regularly to make sure you stay within your budget.

Have a Student Housing Fund Built Up

If it’s possible, prepare to cover several months of rent without student loans by saving from summer work or a part-time job. This can help you fund upfront costs like a security deposit or the first month's rent if the refund hasn’t been granted yet and keep you from stressing about unplanned costs related to your housing. 

Cook at Home and Meal Prep

Dining out or ordering takeout adds up quickly. Instead, save money by cooking at home. Plan meals at the beginning of the week, create a shopping list, and stick to it to avoid impulse buys. Meal prepping can also save time and ensure you have quick, healthy options on hand, making it easier to resist the temptation to eat out when you’re busy or tired.

Use Student Discounts and Deals

Many local businesses, including restaurants, retail stores, and public transport services, offer student discounts that can save you money. Always ask if there’s a discount available, and use apps that highlight student deals. Additionally, check with your school for access to free or discounted events and resources, such as public transit passes, printing, or entertainment.

Be Smart About Transportation

Owning a car can be expensive due to gas, insurance, and maintenance. If possible, consider biking, walking, or using public transportation to save on costs. Many campuses have free or low-cost shuttle services, and some cities offer student discounts on public transit. If you do have a car, try carpooling with friends to share fuel costs when heading to the same destination.

Student Loan Options for Off-Campus Housing

When financing off-campus housing with student loans, there are several loan options available. Here’s a guide to help you decide which type of student loan may be best for covering your housing needs:

Federal Student Loans

Federal student loans are typically the first option students consider, as they offer lower interest rates and flexible repayment options. There are three main types: direct subsidized loans, direct unsubsidized loans, and direct PLUS loans. 

Private Student Loans

All private student loan options are offered by banks, credit unions, and online lenders, typically with higher interest rates than federal student aid. However, they may offer options for students who need extra funding beyond federal loan limits. 

State-Specific Student Loan Programs

Some states offer loan programs specifically for residents or students attending in-state schools. These loans may have favorable interest rates or repayment terms compared to private loans. Check with your state’s higher education department or financial aid office to see if any state-funded loan programs could help cover your off-campus housing expenses. 

Institutional Loans

Certain colleges and universities provide institutional loans to bridge funding gaps for students. These loans often come with unique terms set by the institution, which may include lower interest rates or flexible repayment options.

Find Your Place at MCPHS

There’s a perfect living space for every student at Massachusetts College of Pharmacy and Health Sciences (MCPHS). Want to find yours? We’ve got amazing off-campus housing for our Manchester location and on-campus housing for our Boston and Worcester locations. If you’re not sure what exactly you’re looking for, our Office of Student Access and Accommodations can help you nail down the most suitable student housing option for your needs and class schedule. 

Once you’ve found the right place to live off campus, you’re all set to start the next step toward getting your dream job. Apply to MCPHS today.