If I want to get a loan for school to pay for my rent.. do I have to tell them thats what I'm doing with it

Question

I'd like to get the first few months paid out in advance so I have time to find a job and not worry about rent right away. Also I need money to pay for book and lab fees. My scholarship pays for the rest. If I go through my bank.. will they write the check directly for the place, or will they just give me the check. How does it all work???

Answer 1

For the most part (not all schools/situations); if you are living off campus as well as outside of the home of your parents/guardians, the federal government allows you to take out student loans to pay for your living fees (it is seen as the same as room/board). Your school may ask to see a copy of your lease, and you will be required to use that money for school related things (such as your living expenses). Most schools will take the loan from the loan provider, and then write a check to you a few weeks after the semester has started. Then you can deposit this check into your bank and use it for your various expenses.

Good Luck with school, I hope everything works out. If you need help deciding on a loan provider, let me know. I've used a few different places.

Answer 2

The deal is this, any loan you get through school is usually based on cost of education. The check is sent to the school, which takes out whatever balance you have on your school bill, and then you are issued a refund check based on what is left.
With a private student loan, the check is sent directly to you and you can literally use it for anything you want. I wouldn't suggest using it to go on vacation or to buy your dream car, but for stuff like rent and cost of living, it is a good way to get through college without using a credit card. Private student loans are credit based, so you will either need good credit or a co-signer. I would suggest using Think Financial. Good company with a very easy on-line application and a quick turn-around time. Check them out at http://www.thinkfinancial.com . Good Luck.

Answer 3

Are you talking about federal loans or private bank loans?

Federal ones are supposed to be used to for "school related" expenses, of which I believe the following are acceptable:
tuition, room/board (rent), fees, books, supplies, equipment, dependent child care, transportation/commuting, pc

Avoid private student loans at all costs unless it is your only option, but I would guess they would not require any special documentation as to how you use the money.

Institutions differ in how they handle government loans allocated to students (paid directly vs. held in account). The best thing to do is to check directly with the financial aid people at the school in question--the people on the ground doing the paperwork