What can student loans be used for?

Question

Exactly that, can I use it to repair a car for transportation? How does it work, is the check sent in full? What are the limits?

What if I have a 529 that'll only pay for books and tuition? I need student loans for other things like transportation and housing. Can the school not use it for tuition?

Answer 1

Student loans are meant for educational expenses only. The amount is determined based on your Cost of Attendance and financial need at your school, up to preset academic year maximums established by the federal government. The school will automatically deduct any fees/tuition that are owed on your account, and disburse the remainder to you at preset intervals. These intervals are determined by your school (some schools disburse all at once, some twice per semester, but all schools must separate an full-year loan into two payments, one for fall and one for spring semester).

So, while the loan is meant to be for educational expenses only, the actual use of the funds once they are in your hands is not monitored. Because there are also lifetime (or aggregate) loan maximums as well, you should always borrow carefully so that you do not max out your loan allowance before you can finish school, or so that you do not accumulate a debt that is going to be difficult for you to repay. Only borrow what is absolutely essential for you to succeed in and attend your courses.


If your 529 has already paid your tuition/fees to your school and your account balance is $0 at the time the loan is disbursed from your lender to your school, then the school will have no debt to deduct from your loan amount, thus you will receive the full loan amount you were approved for.

Answer 2

It is YOUR loan and it is intended to get you through university financially. You can spend it however you want to, but it is meant for books fees accommodation. You can spend it on repairing a car, but ensure that there is enough left for the real purpose. You borrow it ultimately from the banks and you do have to pay it back. If you behave irresponsibly with it, and the bank gets `wind` of this, they won`t be too forth-coming when you need the loan for the next year. This in many cases is your first `test` on being an adult, don`t let yourself down.

Answer 3

student loans are for students who need the money but cannot work too much because of school. so after you fill out the fafsa (or maybe other students loans that i don't know of), they will evaluate your need. if you get loans......the money first goes to pay off all your school needs....so they send the money to the school to pay off your tuition. after the money goes to the school, your school gives you the leftovers to pay off anything that you need like rent, books, or even to REPAIR A CAR FOR TRANSPORTATION! :D

take care!

Answer 4

No, No, No, No! which will be fradulent use of the money. you do not opt for a pupil loan once you've the protection force paying for your education. That loan funds might want to bypass to someone who extremely needs it, and that easily isn't you. save for a motor vehicle and financing like something else people. you've get accurate of entry to to a credit union for provider individuals and ought to get an magnificent fee that way.

Answer 5

You get a set amount per year. And can use it for what you want. Clearly they want you to use it on accommodation, books etc, but they dont check up on you, basically because at the end of the day, you're paying it back so it's your responsibility.

Answer 6

Beer, Cider, Vodka, Tequilla, CDs, Ciggies, Clothes, Shoes etc. The list is endless, hence the reason i now am in debt..........

I remember getting a cheque at the start of every term so you don't spend the lot all at once in the first week.

Answer 7

you need to be registered for a course at HE or FE. You will get cheque paid to your bank on 2-3 times a year.
You can spend it how you like, but you have to repay it eventually or they send the Blue meenies out to get you in the middle of the night.

Answer 8

do what you like with money-paid into bank account at start of session-my elder son bought a new PC etc.

Answer 9

it is used for studing further and is given to only those student on whom bank has trust that they will definately do something and it is not given for purchasing car.