By Ela Matters Staff 
Many students at Arizona State University consider moving off campus for more space, independence, or a better financial fit. One common question that arises during this process is: Can student loans cover off-campus housing? The answer is yes—but there are some important rules and planning steps to understand before applying those funds to rent.
Whether you’re an undergraduate, graduate student, or international student, this guide will walk you through how to use your financial aid to cover housing off campus and what to consider when budgeting for it.
How to Include Rent in Your Cost of Attendance
Understanding the COA (Cost of Attendance)
Every university creates a yearly “Cost of Attendance” estimate that includes tuition, books, transportation, and housing. When you apply for federal student aid, your total loan eligibility is based on this estimate—not just your tuition bill. That means housing—whether on or off campus—is considered an allowable expense within your total loan package.
If you decide to live off campus, your school will still allocate a housing allowance within your COA. This allows you to apply a portion of your loan refund to pay monthly rent, utilities, and groceries. In fact, choosing affordable housing near ASU can help stretch your loan dollars further compared to paying for a dorm and campus meal plan.
How It Works
Here’s how the process usually works:
- You apply for federal or private student loans through FAFSA or a lender.
- ASU applies your financial aid to your tuition and fees first.
- If there’s remaining aid (called a refund), it’s deposited into your account.
- You use those funds to pay rent, utilities, and other living expenses.
Many off-campus housing providers understand this schedule and may be flexible with rent due dates at the start of the semester while students wait for their refunds.
Federal Loan Rules on Allowable Living Expenses
What Can Loans Be Used For?
Federal student loans can legally be used for any educationally related expense listed in your school’s COA. This includes:
- Rent
- Utilities (electric, water, internet)
- Groceries
- Transportation to and from campus
- Books and supplies
Choosing high-quality yet reasonably priced student housing near ASU helps you stay within budget and avoid using personal loans or credit cards to cover rent.
What Loans Can’t Be Used For
It’s important to spend your loan money responsibly. You shouldn’t use your federal student loans for non-essential items like vacations, luxury purchases, or entertainment not tied to school life. Misusing loan funds can have consequences when it comes time to repay, and it may be considered a misuse of federal aid.
Smart Budgeting Tips
If you’re planning to live off campus, factor your full monthly living costs into your financial planning. Be sure to include:
- Monthly rent
- Utility bills
- Groceries
- Transportation or gas
- Internet and renters insurance (if required)
Some apartments near Arizona State University, like Paseo on University, offer all-inclusive or partially inclusive rent packages that make it easier to manage your budget. You’ll know your exact monthly housing costs up front—and you won’t be surprised by fluctuating utility bills.
Final Thoughts
Yes, student loans can absolutely be used to cover off-campus housing. In fact, for many ASU students, living in affordable housing near ASU, student housing near ASU, or well-located apartments near Arizona State University can be a smarter financial move than campus housing.
Just be sure to understand your cost of attendance, budget carefully, and use your financial aid wisely. With a little planning, you can live comfortably off campus while staying focused on your academic goals.