Question about FA Grants/Loans

Paying for College
1

<p>Hey I have a question that is not related to me but I’m asking for a friend. I actually hope she has not made the worst mistake of her life. Basically she has used financial aid, probably loans (I am not very sure about how loans and grants are different but I have heard her use both terms) to buy her car.</p>

<p>Is this legal? She uses her FA to pay for pretty much anything except school and has never worked more than 3 days in her life (not kidding). She has told me that she can borrow this money without paying interest as long as she is doing 12 units a semester. This is at a junior college. </p>

<p>My guess is that, being California, the most she will ever have to do is pay it back.</p>

<p>To ask my question simply: Are there possible repercussions for spending her FA this way?</p>

2

<p>When you receive financial aid, doesn’t it usually go to the school first?</p>

<p>She is enrolled in college, and if she decides not to spend her money on her education is her problem. Any money left over can be spent on anything you want.</p>

3

<p>I think the fafsa goes straight to the school. And usually all FA at Cal States</p>

<p>thanks for your answer</p>

4

<p>Is she living at home, but the school thinks she’s living off campus, so she was able to borrow more money? If so, then they’ve given her the aid to pay for an apt or something.</p>