How to convince my parents to let me live near campus instead of commuting?

Op cannot state that she living off campus because she paying her parents rent. This could be a financial aid disaster that could blow up in Op’s face (as she would be committing fraud).

Her housing options when filing the FAFSA are:
living on campus
living off campus and
living with parents.

OP will be living at home with her parents. That is a family decision for her dad to charge her rent as a college student.

It is not the college or the taxpayers job to subsidize her parents, by Op paying her financial aid to her dad in rent.

Op needs to keep in mind that the school can rescind her degree after graduation leaving her with a worthless piece of paper and still demand that she repay all monies that she fraudulently received.