You’ve probably heard that financial aid can help you pay for your school expenses, but does FAFSA cover housing as well? Since housing and meals can be a significant part of your budget, it’s helpful to understand what your financial aid package actually includes. This guide explains how FAFSA-based aid can support your housing costs and shares other resources to ensure you have a safe, stable place to call home during your college journey.
What Is FAFSA?
FAFSA stands for the Free Application for Federal Student Aid. It’s the application you complete to determine your eligibility for federal grants, work-study programs, and loans.
Colleges use the information from your FAFSA to create your financial aid package and to determine your eligibility for school-based scholarships. Submitting your FAFSA early helps you get the best access to available funds, since some programs have limited resources and are awarded on a first-come, first-served basis.
Can FAFSA Cover Housing?
Yes, FAFSA can help cover your housing costs. When you submit your FAFSA, each college calculates your cost of attendance (COA), which is the total estimated cost to attend for the year. COA includes tuition and fees, room and board, supplies, transportation, and other expenses. Because room and board are part of the COA, financial aid based on your FAFSA can go toward housing, whether you live on campus or off campus.
However, there are limits to how much aid you can receive, and your award might not cover every expense. Since housing is often one of the largest costs—on-campus room and board can average more than $13,000 a year at many four-year colleges—it’s helpful to plan ahead.
If your financial aid doesn’t cover your full cost of attendance, you can look into additional options such as scholarships, work-study programs, or student loans to fill the gap.
Can You Use FAFSA Money To Pay Your Rent?
Yes, you can use FAFSA funds to help pay your rent. When you submit your FAFSA, your college uses that information to estimate your cost of attendance, which includes tuition, fees, housing, meals, books, and other essentials. Because room and board are part of that total, the aid you receive through FAFSA can be applied to housing costs, whether you live on campus or off campus.
What Can You Not Spend FAFSA Money On?
While federal financial aid gives you flexibility in covering your educational costs, it’s meant only for expenses related to your studies and basic living needs. You shouldn’t use your FAFSA funds for non-educational purchases like vacations, entertainment, or other luxury items. Keeping your spending focused on school-related costs helps ensure your aid is used as intended and lasts through the semester.
What Financial Aid Will Pay for Student Housing?
FAFSA gives you access to several types of financial aid, though each one covers housing a little differently. Here’s a quick look at the most common types of funding options and how they can help you pay for room and board.
Grants and Scholarships
Grants and scholarships are forms of “free money” that you don’t have to pay back. Some grants, like the Federal Pell Grant, are based on financial need and can be used for both living expenses and tuition in Michigan.
Scholarships from your school or outside organizations may have specific guidelines on how funds can be used, but many allow you to apply any leftover amount toward housing once your tuition and fees are covered.
Federal Student Loans
Federal student loans are another type of aid you can access through FAFSA. You can use these funds to help cover housing and other living expenses, along with tuition and fees.
When your loan is disbursed, the money first goes to your school to pay for direct costs, such as tuition, fees, and on-campus housing. If there’s any remaining balance after those charges are covered, your school will refund that amount to you. You can then use the refund for off-campus needs like rent, utilities, or groceries. Since loans need to be repaid with interest, it’s smart to borrow only what you need and make a plan for repayment after graduation.
Private Student Loans
If you still need additional funding after using your federal aid and other resources, private student loans may be an option. Many private lenders let you borrow up to your full cost of attendance, including housing expenses.
Keep in mind that interest rates and repayment terms can vary, so it’s helpful to compare options carefully. It’s usually best to explore scholarships, grants, and federal loans first before considering private loans.
Work-Study
The Federal Work-Study program gives you the opportunity to earn money through part-time jobs on or near campus. While your earnings aren’t automatically applied to your tuition bill, they can help you cover monthly expenses like rent or groceries.
University and Community Resources
Many colleges, including The University of Olivet, offer their own institutional aid to help make living costs more manageable. Some smaller universities in Michigan also provide support services to help students find affordable off-campus housing and connect with local resources. You may also find state or community programs that offer rental assistance or low-income housing options for eligible students.
Can College Students Qualify for Low-Income Housing?
Yes, some college students can qualify for low-income housing, but eligibility depends on your situation. Federal programs like Section 8 housing vouchers and Low-Income Housing Tax Credit units have special rules for students.
Under federal law, most full-time students under age 24 who are unmarried, do not have dependents, and are not veterans are not eligible for Section 8 assistance unless their parents also qualify or they meet certain exceptions.
FAFSA Helps Pay for Housing at The University of Olivet
FAFSA can help cover tuition, housing, and meal expenses, making it easier to enjoy the full residential college experience that The University of Olivet offers its full-time students. We provide financial aid to 100% of undergraduate students and work closely with you to find ways to make college more attainable.
What really sets The University of Olivet apart is its personal approach. With around 1,000 students, you’ll never feel like just another face in the crowd. Professors know you by name, classmates become your friends, and you’ll find countless ways to get involved and grow.
If you’re ready to join a close-knit, affordable university in Michigan, take the next step and apply to The University of Olivet today.