<p>I heard that if you get a student loan through a bank that you can use it to pay for other things besides tuition, such as an apartment. Is that true or would you have to do something very shady in order to do that?</p>
<p>It should be used for a qualified educational expense.</p>
<p>… which, in the Cost of Attendance, does cover living expenses.</p>
<p>I use my loans to cover everything from books to utilities. They are all factors in my education, because I certainly wouldn’t be attending school full time if I couldn’t pay for a place to live.</p>
<p>I think the fact that they “refund” the overpayment from loans back to you to cover personal expenses speaks to that one.</p>
<p>No it is perfectly legal. As IsleBoy said, it should be spent on your education. However though it is illegal to knowingly decive them. i.e. wanting to buy a car, so you take out a student loan to cover it. As long as you make payments and spend most of the money on something school related you are fine.</p>
<p>This still sounds shady.</p>
<p>What you are saying is, if i got a studen loan and didn’t spend it on education at all, that would be illegal? </p>
<p>How would it not be deciving them if i took out more then i needed to pay for a place to live? </p>
<p>It isn’t that i am a prude about these kinds of things, i just want to make sure i am not locked into a senerio where i am going to do this but it turns out i can’t.</p>
<p>Look at it this way: while in school, you’re either going to live one of two places, the dorms or an apartment. If you live in the dorms, you pay howevermuch to the school in return for a place to live. If you live in an apartment, you pay howevermuch to the landlord in return for a place to live. You’re paying for the same thing either way, the money is just going to a different place. Would you consider it ‘deceiving’ the loan company if you were taking out money to pay room and board charges instead?</p>
<p>Well if no one here says that it is illegal to do then i have no problem with it. Better to be safe then sorry right?</p>
<p>You should have absolutly no problem with the scenario that you listed. No one will come after you for taking money for room and board and spending it on an apartment. If you take out the loan for a dorm and decide to live in an apartment it shouldent be an issue at all.</p>
<p>If you want to be Extra Careful then you could ask the bank that is giving you the loan if it would be ok to use the funds on an apartment instead of the dorm if you change your mind where you want to live.</p>
<p>Its legal–everyone uses their excess student loans for rent payments, college club activities, computer stuff.
I do think its bad when you use it to finance your spring break trip though…I know a few who did that and think its awful</p>
<p>im gonna get student loans and play poker with the money</p>