Student Loans for Off-Campus Housing: Know How to Apply

Pursuing higher education abroad is financially challenging for international students. Starting from the house rents to maintaining daily subsistence in the country, students require stable financial assistance to continue their studies. Apart from the university tuition fees, the cost of living abroad is very costly. Many international students choose to live off-campus to enjoy to experience of greater independence. However, for students who lack sufficient savings or financial support, living out of the main campus can be economically challenging.

Student loans are of two types: federal and private student loans which offer financial assistance to students to cover off-campus housing expenses. Additionally, candidates can use funds to pay their tuition, fees, and other educational expenses. International students usually prefer federal student loans in foreign countries due to their low rates of interest and repayment modes. However, companies like Fidelity Investments, Chegg, Google, Aetna, Estee Lauder, Live Nation Entertainment, New York Life Insurance Company, Nvidia, etc offer various private student loans for off-campus housing. Read the article to explore various options for student housing loans and grants and other related options.

Best Student Loans for Off-Campus Housing

Which is the best student loan for off-campus housing? Which loan is best for international students to cover their housing expenses outside the university campus is completely subjective. Due to the low interest rates, repayment policies, and easy processing, federal student loans for off-campus housing are generally a top choice among international students. Meanwhile, candidates who are not eligible for federal loans can opt for private student loans for off-campus housing as an alternative option. Many international organisations offer various private loans for potential students to manage their living expenses abroad, however, their rates of interest are considerably higher. Both federal as well as private loans help students to manage their off-campus housing expenses and course requirements.

How much does FAFSA give you for off-campus housing?

There is no fixed amount offered by FAFSA for off-campus housing. The figure can vary depending on the financial need and aid packages of the student. Generally, FAFSA does not offer any specific money or student loans for housing. It offers numerous financial aid packages to potential students that include expenses for tuition, books, and living arrangements. The amount offered by FAFSA for international students is generally dependent on the overall cost of attendance (COA) of the students and their financial needs.

How to Use Parent PLUS Loans for Off-Campus Housing?

The dependent parents of undergraduate students are offered numerous Parent PLUS loans in abroad countries. These loans are generally federal loans and the rates of interest are comparatively lower than other external private loans. Meanwhile, most students use these loans to cover their study expenses and off-campus housing payments. Parents of eligible candidates can apply for these student loans for housing through the FAFSA process. Which is used by the university to pay tuition fees and off-campus housing rents.

These grants are generally offered by the university, private organisations, or the government. Students are eligible to use these grants to pay their off-campus house rent and other expenses. Student housing loans and grants are generally non-returnable and offered to students based on their merits and demonstrated financial needs. However, the number of student housing loans and grants abroad is very low for international students. TEACH Grants, Pell Grants, CLP India Scholarship Scheme, Generation Google Scholarship, etc are some of the popular grants offered to Indian students who wish to study at top universities in the world.

Student Loan Disbursements

In many instances, students do not receive their loan money directly from the source and the offered assistance is first transferred to the university. The university deducts the necessary tuition and related fees first and transfers the rest amount directly into a bank account. Students can use the rest money as student loans for housing to pay their rent and other bills.

In case, the candidate does not have any other financial aid or grants, the student loan disbursements can lead to a financial crisis to pay monthly rent for an entire semester or academic year. Sometimes, students face handling disbursement delays as most universities do not return the leftover money until the start of the academic year. Therefore, students are recommended to have additional financial support or work part-time while studying abroad to manage their payments for off-campus housing.

Also Read: SBI Education Loan for Abroad

How to Apply for Student Loans for Off-Campus Housing?

Applying for student loans for off-campus housing is very easy and straightforward. The process of application is similar to the other educational loans and students can apply through FAFSA. The application process includes filling out the application on the Free Application for Federal Student Aid (FAFSA) website where you need to upload some mandatory documents. However, students who are applying for private student loans for off-campus housing can directly contact the organisation or the lender to complete the loan processing.

Repaying Student Loans for Off-Campus Housing

Most student loans for off-campus housing are repayable. The repayment process starts immediately or after a certain gap once the candidate has graduated. The interest rate, repayment schedule, and loan time vary depending on the type of loan granted. Therefore, students are suggested to understand the terms and conditions, and other related details of the loan beforehand to avoid any financial crisis or default.

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