Can You Take Out Student Loans for Living Expenses? What to Know in 2025

Student loans can help with more than tuition. Both federal and private student loans can cover qualifying living expenses, which are part of your school’s cost of attendance (COA). This includes housing, such as on- or off-campus rent, dorms, and meal plans. But it also includes other living expenses, like groceries, utilities, and more.

In some cases, your federal financial aid package will cover these expenses—but not always all of them. In those instances, you may need to seek private student loans to fill the gap.

In this guide, you’ll learn how to apply for student loans to cover living costs, what counts as an eligible expense, and which lenders offer the most flexible options for housing and day-to-day costs.

Table of Contents

1. Can I get student loans for living expenses?
2. How to use federal student loans for living expenses
3. The best private student loans for living expenses 
   1. College Ave
   2. Sallie Mae
   3. Earnest
   4. SoFi
   5. ELFI
4. How to use living expense loans for students
5. Example budget: Using student loans for living expenses off campus 
6. Tips when using student loan funds for living expenses
7. FAQ

Can I get student loans for living expenses?

You can use student loans for any expense that supports your ability to attend school and earn your degree. These generally fall under the umbrella of “educational expenses.”

The biggest expense outside of tuition is likely your housing expenses. You can find our full guide to using student loans to pay for housing here. Beyond housing, qualifying living costs include:

• Utilities (electric, gas, water, internet, and cellphone)
• Groceries and personal supplies (e.g., toiletries, medications)
• Transportation (e.g., parking passes, public transit, gas)
• School-related items (e.g., laptop, books, supplies)
• Dependent care (e.g., child care so you can attend class)

You may not use student loans for vacations, luxury items, or nonessential purchases.

How to use federal student loans for living expenses

Federal student loans can be a lifeline for covering living expenses while you’re in school. They’re designed to help with not just tuition and fees but also day-to-day costs. Here’s how it works:

1. Disbursement to your school first: Your federal loan funds are sent directly to your school.
2. School covers tuition, fees, and room/board (if you live in a dorm): The school deducts these expenses from your loan amount.
3. Leftover funds are refunded to you: Once the school has taken its share, the remaining balance is sent to you via check or direct deposit. This can take 3 – 4 weeks to arrive, so be prepared to wait a bit before the money is in your hands.

Federal loans should be your first choice because of their built-in protections, like income-driven repayment plans and forgiveness options. But sometimes, your federal loans might not cover your COA. In that case, private student loans can step in to help—but keep in mind they don’t come with the same safety nets.

If you have hit your federal limits, private loans might be worth considering. Just be sure to compare your options and borrow only what you truly need.

The best private student loans for living expenses 

Private student loans can help cover your living expenses when federal loans don’t go far enough. Unlike federal loans, private loans typically require a good credit score or a cosigner.

Here are the top-rated private lenders that allow funds to be used for housing and other living costs. In our reviews, we’ve noted which living expenses each lender specifically lists as covered on its website.

College Ave

Best Overall

5.0 _/5

View Rates

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Why we picked it

• Approves loan amounts up to 100% of certified COA, including living expenses.
• Funds are first sent to the school; excess refunded to student.
• No enrollment restrictions (full- or part-time OK).

Undergraduates, graduates, and parents can use College Ave loans to cover housing and other living expenses, such as rent, books, transportation, and groceries.

College Ave uses your cost of attendance to determine the total funding you receive. The approved amount is first sent to your school to be applied toward your tuition bill, with excess funds delivered to you for other expenses.

Loan Details

Term	Details
Rates (APR)	4.39% – 16.85%1
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 8, 10, or 15 years
Repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment	No restrictions
States	50 states
Credit score	Mid-600s and above
Annual income	$35,000

Sallie Mae

Best for Cosigners

4.8 _/5

View Rates

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Why we picked it

• Loan can cover full year’s COA, including room and board, transportation, and personal expenses.
• You can cancel future disbursements without penalty—useful if living expenses change.

Sallie Mae is the industry’s most well-known private lender. You can use its loans for tuition, room and board, off-campus housing, transportation, sheets and towels, meals, books, and more. Rather than applying multiple times, you can cover an entire year’s worth of housing and living expenses with one application.

Loan Details

Term	Details
Rates (APR)	4.50% – 16.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years
Repayment plans	Interest-only, $25 flat, or deferred
Enrollment	No restrictions
States	50 states, D.C., and Puerto Rico
Credit score	Mid-600s and above
Annual income	Not disclosed

Earnest

Best for Large Loans

4.7 _/5

View Rates

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Why we picked it

• Covers full COA including off-campus rent, groceries, transportation, and even dependent care.
• Known for no fees, and unique features like a 9-month grace period and skip-a-payment option once per year.

Earnest is an online lender that offers several unique benefits, such as no fees on any of its loans, a nine-month grace period, and the ability to skip one payment per year.

Earnest loans can cover tuition, room and board, books, laptops, study abroad, kitchen supplies, transportation, dependent care, and more.

Loan Details

Term	Details
Rates (APR)	4.11% – 16.20%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, 12, or 15 years
Repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment	At least half-time
States	49 states and D.C. (Nevada excluded)
Credit score	650+
Annual income	$35,000

SoFi

Best for Member Benefits

4.7 _/5

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Why we picked it

• Allows use of funds for rent, utilities, groceries, and other off-campus living costs.
• Also offers perks like financial planning access and app-based loan management.

SoFi^® offers fee-free student loans that cover living expenses, including rent, utilities, groceries, and transportation.

Borrowers gain access to financial planning services and can manage their loans through the SoFi mobile app. SoFi members earn reward points by using the app, which they can use to pay down the balance on their student loans.

Loan Details

Term	Details
Fixed APR	4.19% – 14.83% w/ autopay
Variable APR	5.74% – 15.86% w/ autopay
Loan amounts	$5,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years
Repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment	At least half-time
States	50 states
Credit score	Not disclosed
Annual income	None

ELFI

Best for Personalized Support

4.5 _/5

View Rates

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Why we picked it

• Covers up to 100% of certified COA, including housing and living expenses.
• Personalized service via a dedicated student loan advisor, which can be especially helpful when budgeting for off-campus expenses.

ELFI student loans offer competitive interest rates and personalized customer service through a dedicated student loan advisor. This advisor can help you through the application process. Over 2,100 borrowers rate ELFI as “Excellent” on Trustpilot.

Loan Details

Term	Details
Rates (APR)	3.98% – 14.22%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years
Repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment	At least half-time
States	50 states, D.C., Puerto Rico
Credit score	680+
Annual income	$35,000

How to use living expense loans for students

Whether you use federal or private student loans, any funds left after your tuition and fees are paid can be used to cover your living expenses. Our recent survey showed nearly half of students living on a college campus used these funds for personal expenses.

Your COA is the key factor lenders use to determine how much you can borrow for living expenses. Your school calculates your COA based on tuition, fees, and estimated living expenses.

Once your school determines your COA, it subtracts any financial aid you’ve already received (like grants and federal loans). The remaining amount is the maximum you can borrow through a combination of federal and private loans.

If you receive both federal and private loans, the federal funds are usually applied first. Here’s how it typically works:

1. Federal loan disbursement: Your school uses federal loan funds to cover tuition, fees, and on-campus housing first. Any leftover amount is refunded to you for living expenses.
2. Receiving private loan funds: Once approved, private loans typically follow a similar disbursement process—going to the school first, with any remaining balance refunded to you. Some private lenders may send funds directly to you, which can give you quicker access to cash for rent and bills.

Since both your school and your lenders are involved, it can take a few weeks to get your money, especially if you’re relying on a combination of federal and private loans. Make sure to plan ahead so you’re not caught short when bills are due.

Example budget: Using student loans for living expenses off campus 

When you’re living off-campus, your financial aid refund can help cover essential bills like groceries, utilities, transportation, and personal expenses. While rent is typically the biggest expense (learn more about how to plan for that in our housing guide), planning for all living costs is crucial to make your funds last throughout the academic year.

Interestingly, our latest survey found students living on campus are 44% more likely to use their student loans for personal expenses compared to those living off campus. This means that regardless of where you live, it’s important to plan ahead and budget carefully when you’re using student loan funds for living expenses.

Here’s a hypothetical monthly budget that focuses on non-rent living expenses:

Expense	Monthly cost
Utilities (electric, gas, water)	$150
Internet and phone	$80
Groceries	$300
Transportation (gas/public transit)	$100
Personal expenses (toiletries, laundry, etc.)	$50
Emergency savings	$50
Total	$730

Of your financial aid refund, you could expect to dedicate about $6,750, or $750 per month, to cover living expenses for a 9-month academic year. With the budget above, you’ll have a little buffer each month for unexpected costs.

Tips for using student loan funds for living expenses

Managing your funds wisely can help you avoid running out of money mid-semester. Here are some practical tips:

• Create a monthly budget before school starts: Estimate your non-rent living expenses and break them down by month to see how much you can reasonably spend.
• Prioritize essential expenses: Focus on necessary costs, like groceries, utilities, transportation, and personal supplies.
• Save for recurring bills: Set aside money for things that come up every month, like your utility bills or internet.
• Avoid impulse spending: Since you may receive a lump sum at the start of the year, it’s tempting to splurge. Stay disciplined to make your money last.
• Automate bill payments: This helps you avoid late fees and keeps your budget consistent.
• Track your expenses: Use a budgeting app to keep an eye on your spending and make adjustments as needed.
• Keep a small emergency fund: Unexpected expenses can come up, so it’s wise to set aside a little extra.

By planning ahead and focusing on essential expenses, you can make your student loan refund last without stressing about running out of money.

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Bottom line: Yes, student loans can cover living expenses.

Student loans are meant to support your education—and that includes groceries, transportation, and basic personal expenses. Whether you use federal or private loans, be strategic with how you spend. Borrow only what you need, avoid misusing funds, and consider all your financial aid options first.

If private loans are part of your plan, compare lenders carefully. Each offers different benefits, limits, and flexibility when it comes to using funds for living expenses.

FAQ

Can you use a Pell Grant for your cost of living?

Yes, Pell Grants can be used for living expenses if there’s money left after your tuition and fees are covered. Since Pell Grants are need-based and don’t have to be repaid, they’re one of the best ways to help cover essential costs like rent, groceries, and transportation. Once your school applies the grant to your direct educational expenses, any leftover amount can be used for your day-to-day living needs.

Can you get student loans for living expenses with bad credit?

Yes, it’s possible to get student loans for living expenses even with bad credit, but your options may be limited. Federal student loans, like Direct Subsidized and Unsubsidized Loans, don’t require a credit check, making them a good choice for students with poor credit. These loans are typically the first option to consider since they offer flexible repayment plans and protections.

If you’ve exhausted your federal loan options, private student loans are another possibility, but they usually require good credit or a cosigner. Some lenders specialize in working with borrowers who have bad credit or offer options if you have a cosigner with strong credit. Be aware that private loans may come with higher interest rates and less flexible repayment options, so compare offers carefully.

Are there grants for living expenses while in college?

Yes, some grants can be used to cover living expenses while you’re in college. Federal grants, like the Pell Grant, can help pay for housing, utilities, groceries, and other day-to-day costs if there’s money left after covering tuition and fees. Similarly, some state grants and scholarships can also be used for living expenses, depending on the program’s guidelines.

Since grants don’t need to be repaid, they’re an ideal form of financial aid. To maximize your chances, complete the FAFSA early and check for additional grants through your school or state government.

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How we selected the best student loans for living expenses

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of student loans for living expenses