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How can eligible Direct Loan funds relate to a this school student’s housing expenses?

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Grinnell College

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Johns Hopkins University

Federal Student Aid says Direct Loan funds are first applied to the school account for tuition, fees, room and board and other school charges. If funds remain, the school returns the additional funds to the student, and all loan funds must be used for education expenses. That provides a possible route for eligible housing expenses; it does not promise a particular refund. Before relying on the funds for a private lease, ask the financial-aid office how the student's aid offer, charges and housing circumstances affect the amount and timing available. Budget from the actual offer and disbursement information rather than from a maximum advertised loan amount. This guidance does not establish that a deposit, monthly rent or an entire private lease will be funded, nor does it authorize unrestricted spending or establish eligibility for a mortgage or purchase.

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