You can use student loans—federal and private—to cover living expenses like housing, groceries, toiletries, and more. These expenses are part of your school’s cost of attendance (COA), which lenders use to determine how much money you should receive.
For many students, the cost of college extends far beyond just tuition. Finding affordable housing, paying utility bills, buying groceries and other necessities can quickly add up. Thankfully, there are housing loans and other financing options to help students cover these living expenses while in school.
In this comprehensive guide we’ll explain the types of loans students can use for housing, tips for budgeting with student housing loans and alternative financing strategies.
Overview of Student Housing Loan Options
Several loan programs allow students to borrow money for college housing and living costs. The main options include:
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Federal student loans – Direct Subsidized Loans, Direct Unsubsidized Loans, and PLUS Loans can be used for housing expenses.
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Private student loans – Non-federal loans from banks and online lenders can cover housing costs
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Parent PLUS Loans – Parents can take out PLUS Loans to help pay their child’s housing expenses.
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Home equity loans – Parents may tap home equity to pay for a student’s housing.
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Personal loans – Students or parents could qualify for personal loans to cover housing gaps.
Federal student loans usually offer the lowest rates and best protections. Exhaust this aid before turning to riskier private loans.
Items Student Housing Loans Can Cover
Student housing loans are very flexible. Funds can pay for:
- Rent
- Security deposits
- Utility bills
- Furniture
- Appliances
- Kitchen supplies
- Toiletries
- Cleaning items
- Parking fees
Anything you need for basic housing while attending college is likely covered. Carefully track expenses to avoid overborrowing.
Tips for Budgeting With Student Housing Loans
Since loans must be repaid with interest, borrow only what you need for reasonable living costs:
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Take out the maximum federal loans first, before private options.
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Compare rental rates to find affordable apartments close to campus. Consider roommate situations to save money.
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Create a monthly budget including estimated rent, utilities, food, and other basics. Factor in occasional spending on toiletries, household items, and entertainment.
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Use student housing loans to cover essential costs first. Don’t overspend just because you have loan funds available.
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Compare grocery prices and buy in bulk when possible. Look for student discounts.
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Use public transportation whenever feasible to save on gas, insurance, and parking fees.
Alternatives to Student Housing Loans
If possible, reduce reliance on debt by exploring these options:
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Apply for university housing grants or programs offering reduced rent for students in need.
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Search for part-time jobs on or near campus that fit your schedule.
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Participate in university work-study programs to earn income.
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Become a resident assistant (RA) to get free or discounted room and board.
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Ask parents if they can contribute anything to your housing costs without taking on debt.
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Use savings from summer jobs to help pay first month’s rent or security deposits.
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Find student discounts and freebies for everything from furniture to monthly transit passes.
Key Takeaways
College students have access to housing loans and other financing strategies to cover living expenses beyond tuition. Seek federal aid first, borrow responsibly, budget carefully, work if possible, and limit debt. With some planning, you can secure safe and affordable housing during school without breaking the bank.
Which living expenses are most often paid for with student loans?
Student loans can cover essential living expenses, including accommodation, meals, transportation, utilities, books, and personal and housing supplies. If you have a child, you may also use student loans to cover child care expenses.
Student loans you can use for living expenses
If you’ve already considered your federal student loan options, the following private lenders can be a good option.
In our reviews below, we’ve noted which living expenses each lender specifically lists as covered on its website.
College Ave loans can be used by undergraduates, graduates, and parents to cover housing and other living expenses, such as rent, books, transportation, and groceries.
College Ave uses your cost of attendance to determine the total funding you receive. The approved amount is first sent to your school to be applied toward your tuition bill, with excess funds delivered to you for other expenses.
- Cover up to 100% of on-campus and off-campus expenses
- Choose your repayment terms
- 3-minute application with an instant decision
| Rates (APR) | % – % |
| Loan amounts | $1,000 – 100% of certified costs |
| Repayment terms | 5, 8, 10, or 15 years |
| Repayment plans | Full, interest-only, $25 flat, or deferred |
| Enrollment | No restrictions |
| States | 50 states |
| Credit score | Mid-600s and above |
| Annual income | $35,000 |
Sallie Mae is the industry’s most well-known private lender. Its loans can be used for tuition, room and board, off-campus housing, transportation, sheets and towels, meals, books, and more. Rather than applying multiple times, you can cover an entire year’s worth of housing and living expenses with one application.
You can cancel any future disbursements without penalty if your education plans change.
- Cover your full year’s costs with one application
- Lower your interest rate with in-school repayment
- Cosigners can be released after just 12 full, on-time payments
| Rates (APR) | % – % |
| Loan amounts | $1,000 – 100% of certified costs |
| Repayment terms | 10 – 15 years |
| Repayment plans | Interest-only, $25 flat, or deferred |
| Enrollment | No restrictions |
| States | 50 states, D.C., and Puerto Rico |
| Credit score | Mid-600s and above |
| Annual income | Not disclosed |
Best for Large Loans
Earnest is an online lender that offers several unique benefits, such as no fees on any of its loans, a 9-month grace period, and the ability to skip one payment per year.
Earnest loans can cover tuition, room and board, books, laptops, study abroad, kitchen supplies, transportation, dependent care, and more.
- Cover up to 100% of certified costs
- No origination, application, or late fees
- 2-minute eligibility check without impacting your credit score
| Rates (APR) | – |
| Loan amounts | $1,000 – 100% of certified costs |
| Repayment terms | 5, 7, 10, 12, or 15 years |
| Repayment plans | Full, interest-only, $25 flat, or deferred |
| Enrollment | At least half-time |
| States | 49 states and D.C. (Nevada excluded) |
| Credit score | 650+ |
| Annual income | $35,000 |
SoFi offers fee-free student loans that cover living expenses like rent, utilities, groceries, and transportation.
Borrowers gain access to financial planning services and can manage their loans through the SoFi mobile app. SoFi members earn reward points by using the app, which can be used to pay down the balance on their student loans.
- Financial planning services offered to borrowers
- Earn points through its mobile app to pay down your loan
- No origination, application, or late payment fees
| Rates (APR) | – |
| Loan amounts | $5,000 – 100% of certified costs |
| Repayment terms | 5, 7, 10, or 15 years |
| Repayment plans | Full, interest-only, $25 flat, or deferred |
| Enrollment | At least half-time |
| States | 50 states |
| Credit score | Not disclosed |
| Annual income | None |
Best Student Loan Advisors
ELFI (Education Loan Finance) student loans offer competitive interest rates and personalized customer service through a dedicated student loan advisor.
This advisor can help you through the application process and offer support as you pay for living and housing expenses.
- Assigned a student loan advisor
- Over 2,100 borrowers have rated ELFI as “Excellent” on Trustpilot
| Rates (APR) | – |
| Loan amounts | $1,000 – 100% of certified costs |
| Repayment terms | 5, 7, 10, or 15 years |
| Repayment plans | Full, interest-only, $25 flat, or deferred |
| Enrollment | At least half-time |
| States | 50 states, D.C., Puerto Rico |
| Credit score | 680+ |
| Annual income | $35,000 |
Buying A House When You Have Student Loan Debt *What You NEED To Get Approved*
FAQ
Can a student loan be used for housing?
Do student loans give you money to live on?
Can you get approved for a house if you have student loans?
Can you get an FHA loan as a student?
What are some examples of student loan programs?
Here are a few examples: Maryland: The Maryland Mortgage Program provides a discounted interest rate and down payment assistance for students with at least $25,000 in student loan debt. Michigan: The MI Home Loan program provides discounted interest rates for qualifying graduates and first time home buyers purchasing property in certain cities.
Can I use a student loan to buy a house?
You can’t use a student loan to buy a house. To buy a house, you’ll need savings or gift funds to pay for the down payment, plus additional liquid funds (i.e. cash on hand or in an account) to pay for any other closing costs. You may be able to tap into other accounts to help pay for your down payment.
How do I qualify for a home loan as a college student?
Let’s take a look at some programs available that may make it easier to qualify for a home loan as a college student. FHA loans are backed by the Federal Housing Administration and have lower requirements for loan approval. Some of the requirements include: DTI ratio: FHA loans require a maximum DTI ratio of 57% in many cases.
Can I buy a home with outstanding student loans?
In most cases, lenders care more about how your monthly debt payments compares to your total income than the total dollar amount of your student loans. As long as you earn a reliable income and can meet DTI requirements with your current monthly debt payments and your new mortgage payment, you can buy a home with outstanding student loans.