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It depends on the Institution in which one is enrolled in or studying. Many colleges offer hostel facilities but it is not completely necessary for students to stay in there. Many students don't go for hostel facilities and rather they make their arrangements outside of the college campus. The students typically don't have to pay the hostel fees as they are not availing the facilities. Those students are generally given a separate identity card for entering in the college which is different from the IDs of students who stay in the hostel.