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When the FAFSA asks if you to select whether you will live in on campus or off campus housing for each school, how do you answer if you don't know for sure yet?

Just put off-campus. Most people at most schools live off-campus. You can amend your FAFSA later if you want, but it shouldn't have any impact on financial aid either way.

If one costs more, choose that. You can always decide not to take the full loan amount, but getting it increased later is much harder (often impossible).