The most basic knowledge about financial aid that one can have is that it makes the college education affordable and encourages students from low-income backgrounds to work. As such, it is also known that college finances are more than just the tuition fee. A lot of other expenses come into picture such as room and board, books and other supplies etc. It is quite common in this case to have a doubt as to whether financial aid covers the other costs or not.

The financial aid does cover the complete cost of college and includes other costs. The student budget which is the cost of attendance includes everything from tuition fee, room and board, transportation charges, books and supplies and other charges. The cost of attendance could be variable from person to person, counting in expenses for disability (if any) etc.

Most of the colleges usually draw three different student budget figures on the basis of the student’s accommodation. The three categories are for students living in the campus dormitory, students who stay in a separate apartment outside campus and those who stay at home with his or her parents. A separate allowance determined by the college will be included in the student budget for those who live in an apartment outside the campus or with their parents.

Colleges make use of a local rent survey in order to determine the costs of room and board outside the college. If the cost of the student’s accommodation is higher than the allowance provided, the college will not make any changes to the student budget as subsidizing lifestyle choices is not amongst its capabilities. However, changes will be made if the cost of accommodation is higher due to an existing disability.

Most of the time, the financial aid provided does not cover the complete need of the students. In such cases, it is better to optimize according to your needs and keep the debt to be paid at the end of college as minimum as possible.