Does Financial Aid Cover Dorms? What Students Need to Know

Picture this: you've been accepted to your dream school, but now you're staring at the housing costs, wondering: Does financial aid cover dorms? The short answer is yes; financial aid can cover your room and board. Most financial aid packages include housing expenses in the Cost of Attendance (COA), which is the actual cost of attending a particular school. However, there is more to the story. This guide will cover financial aid for room and board costs, which types of aid cover housing, and how to make your financial aid dollars go farther.

How Financial Aid and Room and Board Work

Learning the basics, what COA is, and how it impacts your financial aid package, will help you better understand your options.

What is Cost of Attendance (COA)?

COA is defined as the estimated cost to attend college for one academic year. Oftentimes, students only research the posted tuition and fees when determining college costs. Instead, you’ll need to look at the full picture. COA includes: • Tuition and fees • Room and board, i.e., housing and meal plans • Books and supplies • Transportation • Personal expenses Fortunately, financial aid is designed to cover these costs – not just tuition.

Room and Board in Your Financial Aid Package

Schools will include an estimated allowance for room and board on their financial aid website. If they do not, discuss estimates with your admissions officer at the school. These figures are based on: • On-campus dorm costs • Off-campus rental estimates • Living with parents Some schools may designate financial aid that covers dorm costs. Others may provide aid in the form of grants, work-study, and student loans. Ultimately, the financial aid will go to your COA, which includes housing.

Types of Financial Aid that Cover Dorms

Not all financial aid works the same way, but most types can help pay for your dorm or housing expenses.

Federal Pell Grants

Pell Grants are available to college students who demonstrate financial need. These funds will come from the federal government and be deposited directly into your school account. These can cover your COA expenses, including dorms. You do not have to repay Pell Grants.

Scholarships and Grants

Schools also award scholarships and grants as part of financial aid packages. Furthermore, you can win outside scholarships that cover room and board. You will just need to read the fine print to be sure that scholarship funds can cover room and board. Some providers will only pay for tuition and fees. Want to find scholarships for room and board? Fastweb can help match you to scholarships that cover these costs. Simply fill out or update your free Fastweb profile.

Work-Study Programs

Work-study may also be a component in your financial aid package that can cover dorm living. These are part-time jobs on campus that are flexible based on your student schedule. Your paycheck can either be applied directly to your COA, or you can opt to receive the paychecks directly so that you can use the funds to cover personal expenses, like furnishing your dorm room.

Federal Student Loans

Finally, if you find that there is a gap between your COA and what you can afford after financial aid, scholarships, grants, and work-study are applied, you can borrow money to pay for college through federal and private student loans. Keep in mind that these funds must be repaid – and oftentimes with interest. It’s best to exhaust all other ways to pay for college and only borrow what you need.

On-Campus vs. Off-Campus Housing: What Changes?

Choosing to live on- or off-campus will change how financial aid covers housing costs:

Living in a Dorm

If you live on campus, your financial aid is applied directly to your student account, including your dorm costs. Living on campus also comes with the added benefit of predictability. You will know exactly how much you will be spending on housing and food each semester. At the same time, it’s easier to cut costs onto your housing and meals when you live off campus.

Living Off Campus

Colleges typically provide an off-campus living estimate in their COA. If they do not, ask your admission officer for an estimate. If you have a substantial financial aid package and choose to live off campus, you may receive a refund check from the school that you can use to pay rent. Conversely, off-campus living costs are not as predictable. Rent and grocery prices could increase substantially due to economic factors.

Living with Parents

Finally, living with your parents can come with significantly lower housing costs. Obviously, this option wouldn’t be available to all students, but if you’re commuting a short distance to campus, you may consider this option to save on the cost of attendance. This may also reduce your financial aid, but if it saves more money in the long run, it’s a win for you and your family. Take action: compare each option at the schools you’re considering to determine which makes the most financial sense. Use a net price calculator to estimate financial and merit aid packages and determine a COA.

How to Maximize Your Financial Aid for Housing

Smart planning helps you stretch every dollar of your financial aid to cover dorms and living expenses. Here are a few steps you can take to maximize your financial aid eligibility:

Strategy 1: Fill Out the FAFSA Every Year

Your financial circumstances may change year-to-year -- as well as the standards for determining your financial need. Remember to complete the FAFSA every year for which you plan to enroll. The best practice is to file as soon as possible after October 1.

Strategy 2: Choose Your Housing Wisely

Many colleges give students a range of options for room and board, – especially board. Choose a dorm and meal plan option that doesn’t stretch your student budget and leave you with the possibility of taking on student loan debt.

Strategy 3: Apply for Housing Scholarships

If you have tuition and fees covered, look for scholarships that specifically cover room and board. Some colleges may list these on their financial aid website. You can also find these on Fastweb.

Strategy 4: Work with Your Financial Aid Office

Financial aid packages are always negotiable. If you need more funds to cover room and board, ask your financial aid office about filing an appeal. You may also use financial aid packages that provide more aid from other colleges for comparison at your top-choice college. Sometimes, they will try to woo you to their school with a readjustment that includes more aid.

Strategy 5: Budget Your Refund Carefully

If you are one of those lucky few students who receive an overabundance of financial aid and you’re opting to live off campus, do the math to be sure the amount you receive covers the number of months you’ll be renting. Remember to track your expenses in a student budgeting app. List out rent, utilities, food, and transportation to stay on track. Taking control of your housing decisions and financial aid can make college more affordable and less stressful.

Common Questions About Financial Aid and Dorms

Q: What if my financial aid doesn't cover all my dorm costs? A: Sometimes, students still need to bridge the gap between their financial aid and what their COA will be. In that case, you may need to borrow student loans or get a part-time job to cover all your dorm costs. Q: Can I use financial aid for summer housing? A: This will vary by school and program. Sometimes, housing is included in these summer programs. It’s best to ask the school directly if you can apply some of your financial aid to summer housing. Q: Do I have to live on campus to get financial aid? A: Not necessarily. Most colleges include off-campus housing in the COA, so you can use financial aid dollars toward this expense as long as you are eligible. Q: What happens to leftover financial aid? A: Leftover financial aid funds are used to offset other student expenses, like student fees, transportation, and textbooks and supplies. Q: Can international or graduate students use financial aid for housing? A: International students do not typically qualify for federal financial aid. They may, however, be able to use institutional aid toward dorm costs. Graduate students can use loans and assistantships to cover housing costs.

Financial Aid Room and Board Explained

Yes, financial aid does cover dorms, and understanding how room and board fit into your Cost of Attendance puts you in control of your college expenses. Remember: • The FAFSA includes housing costs in your financial aid eligibility calculations. • There are multiple aid types that can cover room and board, like grants, scholarships, work-study, and student loans. • Your housing choice can impact how much your financial aid covers, so make an informed decision about whether to live on-campus, off campus, or with your parents. • Smart budgeting and searching for scholarships can help you maximize your options for paying for the full cost of college, like room and board. College housing shouldn't be a mystery or a financial barrier. With the right knowledge and planning, you can find affordable housing options that let you focus on what really matters: your education and college experience. Ready to find scholarships that can help cover your room and board? Create your free Fastweb profile today and discover thousands of opportunities to make college more affordable.