Tuition and fees are only part of the cost of college. Many students also need help covering everyday necessities like housing, food, transportation, and personal expenses. If you are considering a private student loan to help pay for those costs, it’s a smart question to ask. 

In this guide, we’ll walk through when living expenses can be covered by a private student loan, what counts as an eligible expense and how funds are typically disbursed.  

Quick answer: Yes, but only within your school’s cost of attendance 

In many cases, you can use a private student loan for living expenses like housing, as long as those costs are included in your school’s cost of attendance (COA). COA is the budget your school uses to estimate what it costs to attend for a specific period of enrollment, and it sets the limit for how much total financial aid you can receive, including private student loans. 

What living expenses can a private student loan cover? 

Your school builds your COA (Cost of Attendance) using categories defined by federal guidelines and local estimates. Exact amounts vary by school and by whether you live on campus, off campus, or commute, but living expenses commonly include: 

• Housing (on-campus room and board or an off-campus housing allowance) 

• Food (meal plan or grocery allowance) 

• Transportation (commuting costs like gas, public transit, or parking, depending on your school’s budget) 

• Personal and miscellaneous expenses (basic necessities like laundry, hygiene items, and other everyday costs) 

• Books and supplies (textbooks, lab materials, required course supplies) 

• Computer and required equipment (in many cases, schools include an allowance for a laptop used for coursework) 

Even if you receive a refund (more on that below), student loan funds are not intended for non-education spending. Think of it this way: if it does not support your ability to attend school and complete your program, it is probably not a smart use of loan money. 

How private student loan funds reach you (and why you might get a “refund”) 

Most private student loans are sent to your school first, not directly to you. The school applies the funds to charges like tuition and fees (and sometimes on-campus housing and meal plans). If there is money left over after your school covers those charges, the remaining amount is typically issued to you as a student refund by check or direct deposit, based on your school’s process. 

This timing matters because refunds can take time. If you are counting on loan funds to pay rent or buy essentials at the start of the term, ask your financial aid office when refunds are typically released, and plan accordingly.  

If you receive a refund from your school, that money is still part of your student aid and is generally meant for education-related living costs included in your school’s cost of attendance, such as off-campus housing, food, transportation, and required supplies. Because policies and timing vary by school, it is a good idea to confirm your refund and disbursement schedule with the financial aid office, set up direct deposit if available, and keep documentation for major expenses in case questions come up later. 

How much can you borrow for living expenses? 

Here is the key rule: you generally cannot borrow more than your school-certified COA minus other financial aid you receive. Your school usually has to certify your private student loan amount, which helps keep total borrowing within those limits. 

Example: If your school’s COA is $30,000 for the year and you are receiving $18,000 in scholarships, grants, and federal loans combined, you may be able to borrow up to $12,000 in a private loan (assuming you meet lender requirements and your school certifies the amount). 

Final takeaway 

Yes, a private student loan can help cover living expenses, but the smartest approach is to keep your borrowing tied to your school’s cost of attendance and your real monthly needs. If you are unsure how much to request, start with your COA budget, subtract the aid you already have, and build a simple plan for rent, food, and essentials for the term. 

If you want help estimating what you may need to borrow, explore Ascent’s Student Loan Calculator and financial wellness resources, and consider talking with your school’s financial aid office before you apply. 

Learn more with Ascent  

Navigating the student loan application process can be challenging, and Ascent is committed to providing students and families with the financial resources needed to pursue their dreams.     

From financial wellness resources to our flexible private student loans and undergraduate student loans, we are here to help students and their families make informed decisions about their future in college, and beyond. 

FAQ: Private student loans and living expenses 

Can I use a private student loan to pay rent? 

Often, yes. If your school includes an off-campus housing allowance in its cost of attendance, rent is usually considered part of that category. The practical detail is timing: your school may issue any leftover funds as a refund after disbursement, so plan ahead for when rent is due. 

Can I use a private student loan for groceries and bills? 

Typically, yes, within the food and personal expense allowances your school uses in its COA. That may include groceries, basic toiletries, laundry, and utilities that support your ability to attend school. 

Why does my school have to “certify” a private student loan? 

School certification helps confirm you are enrolled and that the loan amount fits within your cost of attendance after other aid is applied. It is one way the system helps prevent overborrowing beyond education-related costs.