Someone I know got a student loan out to go on his honeymoon and nobody ever knew. Do you think I could do this to get a car since I get paid under the table? Whats the difference between a student loan opposed to a car loan.. do they give you more time to pay it off with less interest?
2006-09-26 10:08:03 · 5 answers · asked by C-Baby 3 in Business & Finance ➔ Personal Finance
As long as your bill with the school is paid, if you are due a refund, you may use the money however you wish. I have seen students use loans and even grants to go on vacation or buy a car. Many times you can also request a "special circumstance" increase in your student budget to buy a car or for car repairs. That's a judgement your school would make. Transportation is normally part of your cost of attendance budget, so you may even be able to get MORE money if you're buying or repairing a car. Ask an advisor at your school!
2006-09-26 10:24:12 · answer #1 · answered by Shelley B 3 · 0⤊ 0⤋
Any government subsidized student loans pay the loaned amount to the school, and you never actually see the check (unless you request funding above the cost of your school - for school expenses - and you can pick up the check at the school).
There are private student loans from a bank that aren't government backed (higher interest rate, less user-friendly features). They usually just mail the check to you. You are susposed to use it for school expenses, though. I believe that you have to be enrolled in school (and they do check) to get this sort of a loan. If you get a student loan under fraudulent reasons, you may have to pay it all back immediately, and may never qualify for a student loan again. If it's a government backed student loan, they can garnish your paycheck and tax return to get their money back.
2006-09-26 10:12:56 · answer #2 · answered by rita_alabama 6 · 0⤊ 0⤋
With student loans, the interest doesn't begin to accrue until a period of time after you leave school.
Typically (in my case, at least) the money from the loan went directly to the school. I never had it in my possession to use for anything else.
(on edit: spyderx's answer is much better than mine)
2006-09-26 10:11:48 · answer #3 · answered by shoedogg 3 · 0⤊ 0⤋
You can use your student loans to pay off the cost of living while you're in college. Generally, you don't have to pay them back until you are finished with school. Government subsidized do not collect interest while you are in school, but unsub loans collect interest the years you are not paying them back. Government student loans have much lower rates.
2006-09-26 10:11:05 · answer #4 · answered by jen 4 · 1⤊ 0⤋
Maybe I took out a student loan and ended up taking a trip to Penn once
2006-09-26 10:10:12 · answer #5 · answered by osunumberonefan 5 · 0⤊ 0⤋