Can Off-Campus Housing be Covered by Student Loans?
September 18, 2009 by admin
Filed under Student Loans
Student loans can be utilized for any college related expenses. Grants, on the other hand, must be used for tuition or books only. In the past I have used my student loan to pay off balances of credit cards used to fund previous years of school.
It is my understanding, that any grant or loan funds remaining after your tuition has been paid, may be used at your discretion. What you decide to use this money for is a private matter.
Off-campus housing and living expenses are both considered a part of cost of college attendance, and are covered under your student loan. The financial aid office at your college has the final word on which expenses your student loan may be used for, but it is generally accepted that off-campus housing is a legitimate expense.
There are times, however when student loans are used for unintended expenses. Can they truly keep track of how the excess money you receive is spent? If you are found to be using your loan money for inappropriate expenses, your loan may be “decertified”, causing your funds to be cut off.
Loans known as “Direct Student Loans” are well publicized in newspaper, television, and other media types. These types of loans can be used for anything from tuition, to off-campus housing, or even purchasing a first car. These and other options will gladly accept your loan money. Be sure to investigate these student loans carefully and become familiar with even the fine print.
Acceptable student loan expenses include: transportation needs, off-campus apartment, food, books supplies, and more. If you make the decision to further your education, remember that the funds from your student loan are yours to spend, but also yours to repay. . This loan will be your responsibility until you have repaid it in full. Intended for your education requirements, your student loan may be unnecessarily drawn out if you do not respect it and handle it responsibly.
There are college students raising their children and attending school, with only their student loan to live on. Mismanaging your loan can cause many years of hardship and regret, coupled with damaged credit that can be with you indefinitely.
As an example, a friend had secured three college loans, making only small payments once in a while. When he began to receive letters asking for payment, he paid no attention. In the end, his whole student loan check was garnished, much to his dismay. With two years remaining to complete his degree, he has now spent the last six years not attending school at all.
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