<p>I'm currently in my first semester in college. I dorm. Because I dorm, I have to pay $10K per semester, but I get $7K in federal loans, so I pay $3K out of pocket.</p>
<p>I don't think I will dorm next semester. So instead of my bill being $10K, it will be $5K. Will I still have $7K in FA? What can I do with those extra $2K? Can I spend it on anything?</p>
<p>It depends on the policies of the financial aid department at your school and how they calculate COA – and whether you are living at home with your parents or are living somewhere that you have to pay rent (such as a shared apartment with other students).</p>
<p>Is that $2k in loans? If so, why are you calling it “free money”?</p>
<p>If you don’t need it for school, don’t borrow it.</p>