Does FAFSA Cover On-Campus Housing?

The Free Application for Federal Student Aid (FAFSA) is a primary tool for students seeking financial assistance for higher education. While FAFSA does not directly issue payments for specific line items like on-campus housing, these costs are integrated into a student’s overall Cost of Attendance (COA). Financial aid determined through FAFSA can then be applied towards these educational expenses, ensuring federal student aid comprehensively considers the wide range of costs associated with attending college.

Understanding the Cost of Attendance

The Cost of Attendance (COA) represents a college or university’s estimate of a student’s total educational expenses for a specific academic year. This figure is not a bill, but a comprehensive budget established by each institution, often based on federal guidelines. Colleges use the COA to determine the maximum amount of financial aid a student can receive.

The COA encompasses various components beyond just tuition and fees. These typically include allowances for books and supplies, transportation, and personal expenses. Room and board, which covers on-campus housing and meal plans, is a significant part of the COA. Financial aid eligibility is determined by subtracting a student’s Student Aid Index (SAI), formerly the Expected Family Contribution (EFC), from the COA.

Colleges often calculate different COA figures for students based on their living arrangements. This means there can be distinct COAs for students living on-campus, off-campus, or with parents. The living situation directly influences the room and board component of the COA, which impacts the potential financial aid offered. For instance, living with parents typically results in a lower COA because it reduces housing and food expenses.

Providing Housing Details on the FAFSA

A student’s intended living situation is important information collected through the FAFSA. The application asks about a student’s housing plans for the academic year, and applicants indicate whether they plan to live on campus, off campus, or with parents. The answers provided help the financial aid office at each college establish the appropriate Cost of Attendance for the student.

While the FAFSA gathers this information, the specific costs for on-campus housing are determined and set by the individual college, not by the FAFSA process itself. Students indicate their housing plans on the FAFSA, but this selection is not binding and can be easily updated by communicating with the school’s financial aid office.

Applying Financial Aid to Housing Costs

Once financial aid is awarded based on the FAFSA and the determined Cost of Attendance, the disbursement process begins. Federal financial aid funds are typically sent directly to the student’s college. The institution then applies these funds first to the student’s direct institutional charges.

These direct charges commonly include tuition, fees, and for students living on campus, the costs for room and board. If the total financial aid awarded exceeds these direct charges, a credit balance is created on the student’s account. This remaining balance is then disbursed directly to the student, or sometimes to the parent for PLUS loans.

Students can use these refunded funds to cover other components of their Cost of Attendance that are not directly billed by the institution. This can include expenses such as books, supplies, transportation, or personal living costs. For on-campus housing, the aid is applied directly to the university’s housing bill.