Student loan doesn’t just pay for your school expenses and allowance; it also pays for your living expenses such as your apartment. Depending on the student loan you got, the money will be sent to you directly, or it will go to the school, which will then be given to you with the tuition already deducted. The money would then be used in your discretion, such as paying for miscellaneous or your apartment.
Nowadays, student loans are the second-largest debt that consumers have. It is currently at its highest and will continue to grow because of the rising tuition fees. Even then, a lot of people still opt for a student loan because it is beneficial for post-secondary education.Also, if you are currently enrolled in big-named universities, expect a big bill coming, which will make your student debt go higher. This bill doesn’t only include your tuition fees and extra costs of education, but it covers housing.
Can I pay rent with a student loan?
Student loans can be used to pay for housing both on and off-campus grounds, so the answer is yes. You can use the money for apartment fees and other kinds of lodging away from the university. Opting for a dorm is the most beneficial since some schools include food in their monthly payments, so you don’t have to worry about meals anymore. Also, dorms already come furnished, so you don’t have to buy the furniture anymore.
Not to mention that dorms don’t require a security deposit and maintenance utilities. Of course, there is still another housing that can be more beneficial than most dorms, and there are a lot of choices to go through. Deciding where to live for the rest of your school years is a good move since it allows you to evaluate how much money you want to spend on housing.
Here are some tips for you know how to use your college loans for housing:
- To use your student loan for renting an apartment, the first thing to do is to apply for college loans, obviously. If you want a federal-backed student loan, you will have to fill up a free application for student aid form with personal details such as your family’s monthly income and your desired school’s details. Where to do this, you ask? Go to your school’s financial aid office, and they will give you the said form.
- If you don’t want to be subsidized by your government in terms of education, you can still choose to apply to private organizations. However, these private organizations have typically higher interest rates and will almost always require payment even if you are still studying.
- If you are eligible for a student loan, you will be presented with different options for a student loan that you qualify for. With that said, choose the student loan that pays both of your tuition fees and living expenses. While waiting to receive the money, it is best if you go out to pick the apartment of your choice. Make sure that the loan can pay the entirety of your apartment’s lease and other utilities that you will have to pay.
- Now that you are apartment hunting, you can ask your friends and family if they know any apartment that might suit you. You can read about them in classified ads in your local newspaper, or you can drive around to see if there are any excellent apartments around.
- After that, you can go to the leasing office and fill out your rental application. You will then fill out the necessary details that they need. Also, make sure to let them know that you will be using your student loan to pay for the apartment. This is important because if you didn’t provide them this information, and when they find out later, you might be denied.
- Finally, you can sign the necessary documents and pay for the deposit that the leasing office needed. Always make sure to pay for the monthly rental payments as to not incur additional fees. If required, you can put your living expenses on a different bank account to make sure you won’t spend it on something else.
Securing where to live while studying is just as important as your education. After all, how can you expect to study well if you don’t have a comfortable place where you can reside while studying. Also, your living situation can have a massive effect on your studies.
Student loans can feel like free money today, but don’t forget that you will have to pay for them in the future. With that said, don’t take loans that will incur a massive debt in the future. Don’t use college loans to finance a lavish lifestyle. If you want to find out about how to budget your money, you can look up a guide from CreditNinja.