On-Campus vs. Off-Campus Costs: Which Is Cheaper for Students?

Choosing between on-campus and off-campus housing is a big decision that affects both your college experience and your finances. 

While living off campus can sometimes be cheaper, data from the National Center for Education Statistics (NCES) shows that students living off campus usually pay more for housing and food than students living on campus. Off-campus students may also have to budget for extras, including transportation, furniture, and a security deposit. 

Comparing on-campus vs. off-campus costs can help you choose the best living arrangement for your budget. 

Current private student loan rates

How much does on-campus housing cost?

The cost of on-campus housing continues to increase nationwide. According to 2024-25 NCES data, the average housing and food cost for on-campus students is: 

• $12,726 at public colleges
• $12,896 at private nonprofit colleges 

In addition to a dorm room, these costs typically include a meal plan, basic furniture, and utilities, including Wi-Fi, electricity, heat, and water. Schools also take care of building maintenance and the cleanup of shared spaces. 

“While meal plans can be expensive, the plans may be cheaper than cooking your own meals in the long run, especially if there’s any waste or if the student living off campus chooses to eat out often,” says Cathy Mueller, executive director of Mapping Your Future, a nonprofit that provides financial aid, college, and career services.

How much does off-campus housing cost?

Some colleges require undergraduates to live on campus for a minimum time period, but you may eventually have the choice to move off campus. 

According to NCES data, off-campus housing (outside of family housing) and food cost more than on-campus alternatives. Average costs total: 

• $13,673 at public colleges
• $13,299 at private nonprofit colleges 

However, the average costs for students living off campus with family are significantly less, totaling $6,439 at public colleges and $5,435 at private schools. 

“The difference in costs between on-campus and off-campus housing varies greatly based on geographic location, variety of housing options, institutional costs, and the local housing market,” says Sarah Austin, policy analyst at NASFAA. “It is possible that on-campus housing is cheaper in some situations and more expensive in others.” 

Living close to campus may be more expensive, for instance, while moving farther away or splitting rent with roommates could lower costs. You'll also likely be responsible for utilities, such as Wi-Fi, heat, and electricity. Plus, you may have to budget for additional costs, like groceries and transportation to and from your classes.

Comparing on-campus vs. off-campus living expenses

When you're deciding where to live during college, it's helpful to compare your options side by side. Here's a look at on-campus vs. off-campus costs and lifestyle differences. 

Factors to consider beyond the price of college housing

Where you choose to live won't just impact your costs. It can also shape your overall college experience. Beyond dorm vs. apartment costs, here are some additional factors to weigh: 

• Convenience: Living on campus offers easy access to classes, clubs, academic resources, and other facilities. If you move off campus, you may need transportation, and commuting to and from school can take extra time. "When you stay on campus, typically it is easier to get to your classes and be more involved with the college and campus life," says Brian Safdari, CEO and founder of College Planning Experts. “You can stay focused on your academics, classes, and college life.”
• Independence: Moving off campus offers more autonomy and the opportunity to develop independent living skills that benefit you later in life. "Students living off campus often trade the convenience and security of a residence hall for the flexibility and privacy of their own place," says Mueller.
• Privacy: With off-campus housing, you can usually have your own room and live alone or with roommates you choose. In a dorm, you're often sharing a room and may live with a roommate the university assigns you. 
• Social life: Living in a dorm can be a more social experience and foster a sense of community. It may also be easier to engage with extracurriculars and other campus activities. If you live far away, you might feel isolated, especially if you don't have roommates. On the flip side, you might appreciate living in a quieter area away from the hustle and bustle of campus life. 
• Security: College campuses typically provide security and other useful resources to support students. Consider the safety of your area and building when choosing where to live off campus. 

How to budget for housing as a college student

Budgeting for housing as a college student can help you avoid surprises and stay on top of costs. 

“On-campus housing costs are typically due upfront at the start of the academic year or term, whereas off-campus housing will typically be a monthly expense,” says Austin. “Knowing these due dates and payment options is vital in budgeting.”

Here are a few tips for preparing financially: 

• Compare your options: Research your various housing options, such as an on-campus dorm room or off-campus apartment. 
• Estimate your housing costs: Estimate total housing costs for your preferred living environment, including transportation and utilities if you're living off campus. Colleges provide a cost of attendance estimate to use as a starting point, but adjust the numbers to your lifestyle  
• Create a budget: Write down your income and expenses to get a big-picture view of your finances and set limits so you don't spend beyond your means. 
• Track your spending: This step helps you stick to your student budget for housing and other living costs. You can use a spreadsheet, pen and paper, or a budgeting app to monitor your spending. 
• Plan for upfront expenses: Your first month may cost extra if you have to pay for furniture, a security deposit, or other setup costs. 
• Look for ways to cut costs: Consider finding roommates, opting for groceries over a meal plan, or moving to an affordable neighborhood. 

“Students should establish a budget each year and track their budget monthly to make sure they are managing their costs and won’t run out of funds before the year is over,” says Mueller. “It’s also a good habit that will serve them well after they graduate from college.”

There are a variety of ways to pay for college housing, including grants, scholarships, work-study, income from a part-time job, and student loans. Researching how to pay for college can help you build a solid plan to manage the costs of room and board. 

Can student loans cover off-campus housing?

Student loans and other forms of financial aid can be used to pay for off-campus housing as long as your expenses don't exceed your school's estimated cost of attendance (COA). COA is an official figure that determines the maximum aid you're eligible for. 

When you live off campus, your school might adjust your cost estimates. However, if your living expenses are higher than the estimated COA, you'll have to pay the difference out of pocket.  

Your school applies your student loan funds to cover tuition and fees before distributing the rest of the money to you to use for off-campus living costs. The timing of this distribution may create complications in some cases.

“If rent for an off-campus apartment is due before the student will receive that refund check, they need to plan how to pay rent before receiving their financial aid,” says Austin.