Can You Use Student Loan Money for Anything
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Student loans are intended to pay for college, but education costs include more than than tuition. You tin likewise utilize student loans for living expenses.
You're limited to borrowing the schoolhouse'south cost of attendance — that'southward tuition and fees, books and supplies, room and board, transportation, and personal expenses —minus any aid you receive.
Each college determines the cost of attendance , which covers expenses for ane academic year and is adjusted yearly. Schools calculate numbers for on-campus, off-campus and commuter students, besides as for in-state and out-of-state tuition.
Both federal and private loans are disbursed directly to your school, which takes out tuition, fees and room and board if you lot alive on campus. Any remaining funds from the loan volition be distributed to y'all, co-ordinate to your school's policy. You may so return whatever funds you don't need or use the money for living expenses, transportation, and books and supplies.
The following examples are compiled from guidance ready by the Federal Pupil Aid part and private student loan lenders.
What can student loans be used for?
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Tuition and fees
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On-campus room and board
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Off-campus housing and utilities
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Miscellaneous personal supplies, including toiletries and medication
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Housing supplies, including linens, a microwave and dishes
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Groceries
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Care for dependents, equally long as you let your school's financial aid role know this allowance should be factored into your aid packet
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Fees for professional testing, licensing and certificates
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Study abroad program costs
What you shouldn't utilize your student loans for
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Amusement, such as concert tickets and Netflix subscriptions
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Pricey electronics, such as an oversized telly or audio system
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Travel, vacations or hotel stays
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A new car, motorcycle or a bike
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Nightly takeout or delivery food
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A down payment or repairs on a habitation or automobile
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Small business concern expenses
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Other debt, such equally personal loans, automobile loans and credit cards
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Anyone else's education costs
What happens if you use loan coin for nonessentials?
Generally, no one is tracking how yous spend your student loan money. Just, y'all could confront consequences if your lender finds out y'all misused pupil loan funds. Depending on your lender'due south policy, your current loan and any future loan options may be terminated, and yous could immediately owe the total residual of what you already used. The bigger deterrent to wasting borrowed money is that yous have to pay information technology back — with interest.
Alternatives to using loans for living expenses
Yous can borrow to pay for living expenses, just that doesn't mean y'all always should. You may exist meliorate off getting a function-time job while in school, tapping your savings or building up some greenbacks by working during school breaks. This fashion you can pay for living expenses upfront without taking on more debt than yous tin can afford .
Source: https://www.nerdwallet.com/article/loans/student-loans/student-loans-for-living-expenses