Living Off-Campus

Thinking about living off-campus? This web page covers the ways you can expect your financial aid package, tuition bill, and finances to change if you do. You can also download the Living Off Campus Summary (pdf).

When developing aid packages, the Office of Undergraduate Financial Aid does not distinguish between a student living in an off-campus apartment and a student living in a residence hall. We use the same budget for all students--with the exception of commuter students who are living at home with a family member. Every student's financial aid is determined using the same room and board expense; the financial aid package, therefore, is not determined differently for students who live off campus. A student's financial aid package will consist of grants, loans, and/or work study similar to previous years' packages. Students who have had only loans or whose parents have had parent loans will be able to get the same kind of loans. The difference in living off campus is evident only on the invoices, where a room and board charge is not reflected for students who do not sign a housing contract nor have any kind of food plan. Because no room and board charges appear, the amount billed is less than if the student lived on campus.

Why does the Office of Undergraduate Financial Aid include room and board costs on my award announcement when I'm living off-campus?

Financial aid is based on a comprehensive budget of the costs you incur as a student at Northwestern. Obviously, a student needs room and board whether he or she is living in an apartment or in the residence halls. To determine our standard figure, $12,780 for 2011-2012, we use the weighted average of a double-occupancy room and a 19-meal plan.

Is it cheaper to live on campus or off campus?

It depends on the student. The Financial Aid Office uses a standard room and board amount for all students. Some students choose off-campus arrangements that are more expensive and some choose less expensive options. Students have more flexibility in how much they spend because they determine how much will be spent on things like rent and groceries. You should also keep in mind additional expenses, such as security deposits and utility, cable television, and internet bills, which you may incur when living off campus. Also, your financial aid is based on a nine-month schedule while many leases are twelve-month commitments.

Living off-campus will not affect your financial aid package:

• Unless you are living at home with a family member and commuting to school, living off-campus has no effect on how your financial aid package is developed.
• The Financial Aid Office uses a room and board estimate that is the same for all students, whether they choose to live in a University residence hall, a fraternity or sorority, or in an off-campus apartment. This estimate represents the average cost of a University double room and a 19-meal per week board plan.

Living off-campus will affect your tuition bill:

• No room and board charges will appear, so the amount you pay the University will be less than if you lived on-campus.
• This does not mean that your family contribution will be reduced. You and your parents are still expected to meet costs not covered by financial aid. Though you actually pay less to the University, the remainder of your family contribution will go to meet your non-University expenses (rent, food, bills, etc.).
• If the total aid paid to your account for a quarter exceeds your term charges you will be eligible for a refund of your financial aid. Starting on the first day of classes for the quarter, students may begin to access their credit. Enrolling in direct deposit helps to get money to students faster.

Sample financial aid package and tuition bill

To illustrate this notion, let's look at the quarterly tuition bill for a student who is living off campus.

Financial aid package

• Total cost of attendance: $58,429, including tuition, room & board, books, personal expenses, etc.
• Family's contribution: $16,000.
• Total financial aid package: $42,429, including the following components:
  • Northwestern Scholarship: $30,629
  • Stafford Loan: $5,500
  • Perkins Loan: $4,000
  • Federal Work-Study: $2,300

Student's tuition bill

Because the student has chosen to live off-campus, the only charges incurred through the University are tuition, the ASG Activity Fee and the Athletic Event Fee.

• Total quarterly bill amount: $14,022, including the following components:
  • Tuition: $13,864
  • Fees: $158
• Total financial aid applied to this bill: $13,368, comprised of one-third of each of the aid sources, which are distributed quarterly:
  • Northwestern Scholaship: $10,209
  • Stafford Loan: $1,825 (.5% deducted for loan origination fees)
  • Perkins Loan: $1,334

Note that Federal Work-Study funds do not credit to the student's account. These are paid directly to the student as the funds are earned, and are generally intended to cover books and other personal expenses not billed through the University.

• Balance due: $654, which will have to be paid by a portion of the family's contribution.

Student's living and personal expense budget

The student is left to pay for housing with his or her remaining family contribution and work-study earnings.

• Total quarterly living expense budget: $4,875, including the following components:
  • Remaining family contribution: $4,680, comprised of one-third of the annual contribution ($5,334) minus the tuition balance payment, above ($654).
  • Work study earnings: $766 (one-third of the annual $2,300 allowance)
• Total monthly expense budget: $1,625, since a quarter is approximately three months long.

If this budget is adhered to, the student's family contribution will equal that assessed by the aid office. If the student manages a budget lower than this, the family contribution will be lower than the one assessed by the aid office. If the budget turns out to be higher, it is expected that the student's family is picking up the difference, as we will not grant additional financial aid to cover costs that exceed the budget.

To figure out how your own aid, charges, and family contribution will work out if you live off-campus, see the Living Off-Campus Worksheet.

Financial considerations when deciding to live off-campus

The responsibilities of maintaining a house or apartment and adhering to a budget require discipline and management skills different than those needed when living in University housing. Many students feel that living off-campus can provide economic benefits because they can control how much they are paying for room and board.

However, off-campus living provides its own set of challenges that you must carefully consider before deciding to sign a lease.

• Paying security deposits: Most rental agencies require a security deposit equal to at least one month's rent at lease signing. Depending on when your lease begins, you may need to pay this deposit (in addition to the first month's rent) before the end of the current school year for a lease for the upcoming year. You cannot access financial aid funds intended for the upcoming academic year until the first day of class in September. Furthermore, your aid for the current year cannot be increased to cover this type of expense. Make sure you have a method of paying your deposits without relying on your financial aid.
• Start-up costs: Make sure you come to school with money for basic starting expenses such as setting up your phone service, utilities, buying furniture, etc. You will not be able to access your financial aid until the first day of class, and your first work-study paycheck will not be available for at least two (and up to four) weeks, depending on when you start working.
• Reliable roommates: If you do plan on living with others, financial matters become easier if everyone's name is on the lease as well as on all the utilities. You could get "stuck" with too much responsibility (and liability) if everything is listed under your name only. Also, make sure your roommates understand how they will be able to pay their share of the expenses.
• Timing: Remember that your financial aid is based on a nine-month schedule; however, most leases ask you to commit to twelve months, so you will probably have to pay for a few months without the use of financial aid. You will have to make a choice between budgeting yourself so that you are able to live in the apartment over the summer or finding a sub-letter. Also, your lease may start in August, but you don't plan to come to school until September. Because the school year doesn't start until close to October, you'll have to pay two months rent before you can use any available financial aid.
• Money: If you wish to access your financial aid through a cash advance, your financial aid (excluding Federal Work-Study or other work) must exceed billed expenses on your account. In addition, all application materials and requested documents must be on file in the Financial Aid Office. Generally, only forms of aid that can be used for expenses other than tuition and fees can be advanced. A financial aid counselor will let you know what form of aid your cash advance is against. In general:
  • Forms of aid that can be advanced against: Northwestern Scholarship, the NU Loan, Federal PLUS, Stafford and Perkins loans and Federal SEOG and Pell grants.
  • Forms of aid that cannot be advanced against: State scholarships and grants, athletic or merit scholarships, and Federal Work-Study earnings.

Tips for students considering whether to live off-campus:

• Develop a cost plan of reasonable off-campus expenses and compare it to on-campus room and board rates.
• Use the Off-Campus Housing Office as a resource when looking into off-campus arrangements. They provide listings of available residences, maps, transportation information, newspaper ads, and counseling assistance.
• If you have additional questions or concerns regarding living off-campus and your financial aid, please contact a counselor in our office