Campus Housing Affordability Act Stops Counting Housing Aid Against Student Financial Aid Eligibility

The Campus Housing Affordability Act tackles a major headache for low-income college students: the Catch-22 where receiving housing assistance could disqualify them from other crucial financial aid. This bill removes a long-standing federal restriction that prevented students from accessing housing assistance in the first place (Sec. 2). More importantly, it creates a mechanism to ensure that if an eligible student does receive housing aid, it won't torpedo their chances for federal grants and work-study programs.

The Double-Whammy Problem Solved

For years, a student who qualified for Section 8 tenant-based rental assistance often faced a tough choice: take the housing help and risk having that assistance counted as income, which could reduce or eliminate eligibility for federal student financial aid like Pell Grants. This bill fixes that by amending Section 8(o) of the United States Housing Act of 1937. It grants the Secretary of Housing and Urban Development (HUD) the authority to waive certain program requirements for "eligible students" (Sec. 3).

Here’s the massive change: If a student gets this assistance through the waiver, that aid cannot be counted as income when determining eligibility for federal student financial aid, calculating income from college co-op education programs, or even when determining child support obligations (Sec. 3). Think about the real-world impact: A single parent going back to school who needs housing help can now get it without worrying that the assistance check will cut their Pell Grant in half. It keeps the safety nets from canceling each other out.

Who Qualifies for the Break?

This isn't a free-for-all for every student renting an apartment off-campus. The definition of an “eligible student” is specific and fairly narrow. To qualify, you must already be enrolled in an eligible institution of higher education, and you must live in a student housing facility maintained by that institution (Sec. 3). Crucially, you must also be otherwise eligible for Section 8 tenant-based assistance. This means the bill targets the lowest-income students who are already navigating the complex world of institutional housing and federal aid.

The Practical Reality Check

While this bill is a clear win for housing stability, we need to keep one thing in perspective: the underlying Section 8 program is already massively oversubscribed, with long waiting lists in most areas. This bill doesn't create new Section 8 funding; it just removes a barrier and creates a waiver for a specific group of students who already qualify for the program. The practical benefit will likely only reach a small, highly qualified subset of students who manage to secure that Section 8 assistance first. However, for those students who do get it, this bill ensures they can use that housing aid to stay housed and stay in school without sacrificing their educational funding.