May We Use the Off-Campus Housing Allowance For All Students?

Scenario: 98% of our law students live off-campus. Our on-campus students have housing options that are about 20% less expensive than the off-campus average, as determined by regular surveys.

Answer:  No. You may not use the off-campus housing allowance for all students. According to Section 472 of the Higher Education Act of 1965 (HEA), as amended, [20 USC 1087LL], excerpted below:

"For the purpose of this subchapter, the term “cost of attendance” means—

5) an allowance for living expenses, including food and housing costs, to be incurred by the student attending the institution on at least a half-time basis, as determined by the institution, which shall include-

(A) for a student electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for such services that provides the equivalent of three meals each day;

(B) for a student not electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for purchasing food off campus that provides the equivalent of three meals each day;

(C) for a student without dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;

(D) for a student with dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;

(E) for a student living off campus, and not in institutionally owned or operated housing, a standard allowance for rent or other housing costs;

(F) for a dependent student residing at home with parents, a standard allowance that shall not be zero determined by the institution;

(G) for a student living in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, a standard allowance for food based upon such student's choice of purchasing food on-campus or off-campus (determined respectively in accordance with subparagraph (A) or (B)), but not for housing costs; and

(H) for all other students, an allowance based on the expenses reasonably incurred by such students for housing and food;"

The law is clear that there must be different housing and food costs based upon the student's living situation.

Note: Effective with the 2023-24 award year, the COA component for “room and board” has been renamed "living expenses." "Room" has been renamed "housing" and "board" has been renamed "food."

See the November 4, 2022 Dear Colleague Letter, GEN-22-15 for more information.

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Cost of Attendance.