Rent Too High? How a Cost of Attendance Adjustment Can Increase Your Loan Limit

The biggest obstacle to securing enough financial aid is often the school’s own calculator. Colleges are required to assign every student a “Cost of Attendance” (COA), a rigid limit on the total aid you can receive from all sources, including loans.

This number is built on averages, not reality. If the university estimates that the “average” student pays $800 for rent, but the cheapest available apartment in your city is $1,200, that gap creates a financial shortfall that standard student loans are legally blocked from covering.

Most families accept this cap as a final, non-negotiable federal limit. It isn’t. Under “Professional Judgment” regulations, financial aid officers have the authority to override these averages and increase your borrowing limit to match your actual living costs—if you provide the right documentation.

The ‘Average Student’ Problem

When a university creates its financial aid packages, it cannot calculate the specific grocery bill and rent for every single one of its 20,000 students. Instead, they use standardized budgets.

They might allot $1,500 for books and supplies, $10,000 for off-campus housing, and $2,000 for transportation per year.

If your expenses fit inside that box, the system works. But if you fall outside that box, perhaps you are a nursing student with expensive clinical gear, or you are a parent paying for childcare, the standard financial aid package literally forbids you from borrowing enough money to cover your bills. Even if you have a willing cosigner for a private loan, the school cannot certify it if it exceeds that COA cap.

What Expenses Actually Qualify?

You cannot ask for a budget increase to cover lifestyle choices like streaming services, pet food, or a nicer car. However, the Department of Education allows schools to exercise “Professional Judgment” for educational and essential living expenses.

Common grounds for a successful appeal include:

• Housing Costs: If your rent is significantly higher than the school’s allowance (and you can’t move), you can submit your lease as proof.
• Computer Purchase: Federal law allows a one-time budget increase for the purchase of a computer needed for school. If you need a $1,500 laptop for an engineering program, the school can add that $1,500 to your aid budget.
• Childcare: This is one of the most approved categories. If you pay for daycare while attending class, that cost can be added to your COA.
• Transportation Repairs: While they won’t pay for your car payment, some schools will increase your budget for essential repairs needed to get you to campus.
• Disability-Related Expenses: Costs related to a disability that aren’t covered by insurance or other agencies.

The Outcome: Borrowing Power, Not a Blank Check

It is critical to understand what a “Budget Adjustment” actually does. It does not usually result in more free Pell Grant money. The Pell Grant is tied to your income (SAI), not your expenses.

Instead, increasing your Cost of Attendance increases your borrowing limit.

For example, if the school raises your official budget by $3,000 to cover a new laptop and higher rent, that creates $3,000 of “unmet need.” You can then fill that gap with:

1. Direct Unsubsidized Loans (if you haven’t hit the federal annual max).
2. Parent PLUS Loans.
3. Grad PLUS Loans.
4. Private Student Loans.

While taking on more debt is never the first choice, for many students, it is the only way to avoid dropping out or working full-time during finals week. It bridges the liquidity gap.

How to Request an Adjustment

This is not done through the FAFSA. It is a direct appeal to your college’s financial aid office.

1. Check the Website: Search your school’s name + “Cost of Attendance Appeal” or “Budget Adjustment Request.” Many schools have a specific PDF form for this.
2. Gather Documentation: You cannot just say rent is expensive. You must attach a copy of your lease, the receipt for the laptop, or the invoice from the childcare provider.
3. Write a Simple Statement: Explain clearly: “The standard housing allowance is $8,000. My actual rent for the academic year is $10,800. I am requesting a budget adjustment of $2,800 to allow me to secure additional financing.”

Financial aid officers are not looking for a sob story; they are looking for math. If you provide the numbers and the receipts, they have the regulatory power to update your file.

A Safety Valve for the Spring Semester

If you are currently struggling to make ends meet before the summer break, you can still file this appeal for the current 2025-2026 academic year. If approved, the school can retroactively adjust your budget and process a late loan disbursement to reimburse you for expenses you’ve already incurred.

It isn’t a magic wand, but it is a vital tool for ensuring that federal “averages” don’t derail your specific education.