The American education system thrives on virtues of toil, hard work, candor and integrity. That is how great men and women discover their true calling and become valuable assets for our nation.
Out of all the rights that exist in our honorable Constitution, the right to education takes a supreme place. It doesnât matter if youâre rich or poor, if youâre determined enough to educate yourself and make the most of it, youâll find a way.
Student loans are provided to budding students so that they become valuable members of the society and pay it back. The question âcan you use student loans for anythingâ is kind of slick to pop into oneâs mind, because student loans are meant for your growth and development. It should stay that way.
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But still, youâve got to know it for the sake of understanding what can you use student loans for. Itâs of utmost importance that your primary purpose of a student loan is education and expenses related to it. After all, youâve got to be a responsible citizen and pay that money back.
Letâs get straight to the pointâcan you use student loans for anything? If yes, then what can you use student loans for? Would a brand new gaming console be a good start, or youâd be better off if you use that money for your in-house expenses? Read away and quench your thirst.
WARNING: You might not find the proverbial nod to go ahead and splurge on unnecessary expenses from the student loan money, if thatâs what youâre here for.
Well, yes and no.
When it comes to student loans, the primary purpose of presenting you a hefty chunk of money is to educate you. If you feel that you can use student loans for something like a NetFlix subscription, let us remind youâthere are stern boundaries.
When you get a student loan, your primary purpose has to be fulfilledâso first things first, understand the fee structure of your college. The Schoolâs Cost of Attendance is something from which you can borrow from.
So apart from tuition, fees and accommodation (if on-campus), itâs all up for grabs. Now if we look at these, itâs safe to say that apart from tuition fee, you can save easy bucks on other components of the cost of attendance.
Weâre going to look at all the possibilities and figure out what can you use student loans for, but first weâve got to understand how the student loan money reaches into our hands.
When you go for a student loan, your loan provider has two choices. Either the provider directly disburses funds to college on your behalf. Or funds are transferred to the studentâs account from where s/he can pay the college fee.
In both these cases, you can use your student loan money (at least a part of it) to your personal fancies. If your college directly gets access to funds, itâll disburse remaining funds back to you.
Now the disbursement can be according to the schoolâs policy. Many schools disburse funds back in installments so as to encourage prudent perusal of student loan money.
This money can either be paid back to your student loan provider or you can use it on your living expenses. Basically, you can use this amount on every necessity you can think of.
You cannot just use student loans for anythingâyouâve got to draw boundaries so as to figure out whatâs a necessity and whatâs not. The biggest mistake that students can fall victim to is spending this money on superfluous expenses.
This money was destined to be spent on your education and if you canât find a direct link between your education and your expenses, flush itâitâs not worth spending student loan money on.
For instance, you might use your student loan money to buy a car if itâs your only source of the commute. Buying a Smart TV from your student loan money, however, would be a dumb move.
You donât have to do the hard work. Weâll draw boundaries so that you know where to spend student loan money and where not to splash whatâs rightfully for your education.
What can you use student loans for? All expenses related to your education.
Can you use student loans for anything? Kinda, but itâs better if you donât.
Once you have the student loan money in your bank account, you donât have a free hand on spending that money anywhere you want.
When a student signs the FAFSA (Free Application for Federal Student Aid), s/he agrees to put federal and/or state financial aid to pay the cost of attending an institution of higher education.
This includes any expenses related to your educationâbe it the commute to the bus stop or the bus fare, groceries and toiletries too. Itâs just that youâve got to learn where to draw the line between whatâs necessary for your cost of attending college and what isnât.
With that being said, weâre going to explore boundaries when it comes to what can you use student loans and where you canât.
NOTE: You can also use the student loan money to take care of dependants in the house. Youâve got to inform the financial aid office of your school before you do so.
If you think about itâyou can use your student loans for anything, as long as itâs related to your necessities. But bewareâyou get to draw the line between whatâs necessary and what isnât.
Come to think of it, the money is in your account already. Whatâs stopping you from using your student loan money wherever you want to? Weâll give you a couple of good reasons why you cannot use your student loans for anything.
First of all, you wonât have money to spend on your education, which was the prime purpose of the loan. By the end of the session, your fee would be due but you wonât have money to actually pay it.
Secondly, if it is found that youâve been misusing your student loan money, thereâs a possibility of fine and imprisonment. Schools donât actually track where the money went, but itâs better to be safe than sorry.
Student loans are granted to you so that you learn and grow while learning from best educational institutions in the country. More importantly, they have to be paid back once you graduate and start making money.
If youâre pondering over the question âcan you use student loans for anythingâ, itâs better to spend it at places where it helps in your overall development. Weâve told you, and now itâs your time to think about itâwhat can you use your student loans for?