<p>do a lot of students live on campus for co-op? i would like to, but can you use your student loans to pay for housing, if you’re not taking classes?</p>
<p>When my S started at NEU 5 yrs ago (he is graduating this yr) students were guaranteed housing through their middler yr (I think this is still the case?) and he lived on campus for his first three yrs including during his first co-op. And, yes, student loans can be used for housing during co-op, in fact many financial aid packages, including ours, may even offer student loans specifically for the co-op period.</p>
<p>Well… actually you aren’t supposed to… The way it works is that loans are SUPPOSED to be for tuition, books, etc, not for housing or rent. But since on-campus housing is billed to your account, you can just use the loans towards it (since it looks the exact same as paying for tuition). They distribute the federal loans over the co-op period as well (although sometimes less) because they know people still need to use them. </p>
<p>But for instance if you were trying to get a private loan, they might say no if they don’t see you as taking any classes that semester. It usually isn’t an issue at all, and nearly everyone I know stayed on campus for at least one of their co-ops, but I know if can become an issue sometimes. My parents ran into is as a problem when trying to take money out (tax free) from their retirement accounts. They have to show its being used for tuition related expenses, so they can’t put the tax-free money towards housing.</p>
<p>am pretty sure from things I have read that federal Stafford loans (which is what S received) can be used towards the TOTAL cost of attendance, including housing (as can Parent PLUS loans)</p>
<p>I think the main issue with it is non-federal loans and tax-free withdrawals, though. I’m certain I remember my mother talking about how housing wasn’t supposed to be paid with the tax-free withdrawals, and I remember that money I got from a Florida pre-paid plan wasn’t allowed to go towards housing.</p>