Is it a good idea for a college student to use a student loan to pay for off campus housing?

My friend's son wants to rent an apartment off campus with a friend of his. They go to a university in a small, rural community with cheap rent. He found out (and being familiar with the area I believe this to be true) that off campus housing, including food, is actually cheaper than living on campus. My question is: do you think that it is advisable to use his private (non federal) loans to pay for housing off campus. He does have a scholarship that pays for all of his tuition and fees, so really all he has to pay for is the housing. He doesn't work during school, only during the summer. That's not enough for him to pay rent with the rest of the year, especially with the summer classes he plans to take.

Answer:
Hi

Well.. yes and no.. If he is getting Financial Aid or Grants that will cover his on campus housing then he should keep it.

If he is having to Pay out of pocket for these then he should move off campus wher it si less expensive.

But in figuring this I hope he is counting things like Utilities and hook up fees for cable and phone, any deposits for electric and so on.. Utility companies tend to be kind of rough on College kids.. ALso transportation costs of not living right on campus.. and if he had a meal plan on campus.. then he will need to buy food and also have pots and pans and kitchen stuff off campus he did not have to have before.

Finally Laundry.. Dorms have laundry facilities.. He needs to plan for those costs and getting to an from a place to wash clothes or paying for utilities to wash th em in his own rental if it has a washer etc.
Also check added costs for parking on campus as well.. he may have to pay for parking if he does not live on campus or pay more.

FINALLY.. he should be certain that he is Allowed to live off campus..

Some schools do not allow Freshman /Sophmores to live off campus unless with family or other special things like they are married etc.

I wish him well.. but he better watch those loans. they will add up in a hurry!

Good Luck
Wismom
If his scholarship covers on campuss houseing then no, take the free houseing, but it it is cheaper, then yes it makes sense to take out loans to pay for houseing.
By all means yes its ok.
Be sure to really factor in the cost of the apartment as far as including gas for travel back and forth as well as potentially paying for parking (if he has to drive). Factor in bus/subway etc if he does not have to drive. Also factor in the time lost due to travel as well as how many times you might return to campus in a given day.
You also miss out on dorm life.
From your description.
It makes sense, yes.
The priciple of Money management is spend it for the purpose for which it is meant. If one diverts funds in any way, sooner or later it can get one in trouble. So I would recommend that you ask yourself "Can the loan be used for this purpose? Is it meant to be used for this purpose?" If answer is "YES" go ahead. If it is "NO", never do it in spite of all the temptations you may have.
I have a son who also used his loans to pay for rent. The loans are for his living expends when in school. The only problem you my have with this rent is in the Summer time and school is out. You may have to pay some of the rent for him. or have him take in room mates to share the rent.
If you are in a position to buy a condo, your son can live there with roommates can pay you rent, and you accrue equity and possibly a place to retire.

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