What can and can't you do with financial aid?

<p>I was having a dicussion with a group of friends today and it seems no one knows what you really can do with government money like pell grants and stuff besides for education expenses. A friend of mine said she had a cousin that use her federal grants to buy a car and another that used it towards a down payment on a house. Others spent it on definite “non” educational expenses. Is this in anyway illegal? I don’t qualify for federal aid so it doesn’t really matter to me but it seems strange that people can use federal money to buy more or less luxury items.</p>

<p>Here’s some info about Pell Grants. I don’t believe the $$ is released to the student but rather it is sent to the college/U where thes tudent is enrolled. I can’t believe the money is used in the ways those individuals have indicated and yes, misuse of federal funds IS illegal. </p>

<p><a href=“U.S. Senate: 404 Error Page”>U.S. Senate: 404 Error Page;

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<p>well each quarter or semester a certain amount is dispersed to you, that means after all the tuition and housing fees are paid for, so the rest goes to you in the form of cash or check, so you can spend it on books, personal expenses, transportation, etc… so you can use that amount on car payments or whatever you like it’s your choice but that means you have to cut back on transportation or personal stuff.</p>

<p>RE Eligibility info (from the .gov site I posted above):</p>

<p><<yes. pell=“” grant=“” eligibility=“” is=“” based=“” on=“” financial=“” need.=“” although=“” students=“” with=“” family=“” incomes=“” up=“” to=“” $45,000=“” may=“” be=“” eligible,=“” most=“” awards=“” go=“” below=“” $20,000.=“”>></yes.></p>

<p>If the family only makes $45,000 (& most often under $20,000), it is hard to see where even with the max $4000+ Pell Grant for college education there would be much money for “luxury” items in addition to paying for costs of college, as well as expenses involved with supporting a family. If there are questions about this, I’m sure the FAid office would be happy to address them.</p>