Technically, financial aid is to be spent on the student who borrowed the money. I assume you will be swapping out loans for your own money that you would otherwise spend on that student’s educational expenses, thereby leaving more of your own money to be spent on the next kid. Fine. But keep in mind: The loans are in the student’s name, so be sure that the student understands what they are borrowing. And interest begins accruing as soon as the loan funds are disbursed.