Can you use your money from a federal student loan refund for anything ? For example rent?
October 17, 2010 by admin
Filed under Student loans
I am supposed to be getting a refund from a Federal William D Ford Direct Student loan. Meaning they already paid the school and the school is sending me a refund. My husband and I are getting divorced and I am broke and need a place to stay. Is it possible to use that refund money for living expenses or can you get into trouble for that.
You can only use it for school. They will find you and arrest you if you use it for something else.
You can use the money for anything you wish. If you are buying lunch I’ll be there.
Your school’s financial aid office should be a good source of information about what you can spend the funds for with out getting in to trouble about your federal student loan amount account.
Technically, federal student loan proceeds can only be used to pay for educational expenses. However, the term “educational expenses” is rather broad and includes: tuition, fees, books, supplies, transportation, child care, room and board, computer purchase, etc. Basically, anything you can justify as a direct educational expense or an indirect educational expense (an expense which allows you to go to school) can be paid for with your federal student loan.
Yes, using it for rent (or anything else) is OK.
you are going to be responsible for the entire loan eventually so if you need to use the money for something other than the education, you are still the one repaying for all of it
you could use the money to pay down the loan but since you need it for living it is still who will repay the entire loan regardless of what you used it for
http://www. loan123. org Hope you can get help here.