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What Approved Expenses Can Your Student Loan Cover?
"What can I use student loans for?" This is a common question, asked by both students and parents. If you're confused about how these funds should be used, you're not alone. Let's clarify what student loans can and cannot cover.
What Can't I Use My Student Loan For?
Student loans are meant for educational expenses and costs related to attending school. Since you can borrow up to the total cost of attendance minus any other aid, it’s crucial to use the funds wisely to cover your tuition bills.
Car Loan? No.
You may need reliable transportation, but most colleges offer campus bus systems, cities have public transportation, and off-campus housing is often near campus within walking distance. If you need a car, a part-time job is a better option; student loans are strictly for educational purposes.
Spring Break? No.
It’s tempting to join friends on a fun spring break trip but remember that the funds in your bank account from a student loan are for your education, not a vacation. Responsible borrowers use these funds for educational expenses.
What Happens if I Misuse My Student Loan Funds?
Misusing your student loan funds can have serious consequences. The school’s financial aid office could report the misuse to the government, and the U.S. Department of Education might demand their money back, forcing you to pay education expenses out-of-pocket.
Using funds for non-approved purchases could lead to falling behind on tuition or rent payments or impact your ability to obtain future student loans. Only borrow what you need, so you aren’t overwhelmed when it's time to start repayment.
What Can I Use My Student Loan For?
Student loans are designed to bridge the gap between the total cost of attendance and other financial aid received. They are meant to help pay for all essential aspects of attending college.
Tuition and Books
These are some of the largest and most common educational expenses. Student loans are intended to help cover these costs, which schools calculate into the total cost of attendance to determine your eligibility and loan amount.
Housing
Whether it’s an on-campus dorm or an off-campus apartment, housing is a major expense. The average price of college housing in the U.S. is around $10,000 a year, and student loans can cover this necessity.
A Computer
A computer is an essential piece of equipment for the modern student, needed for writing papers, attending online classes, and completing homework. Because it is an essential educational expense, you can use your student loan for it.
Food and Groceries
These living expenses are a necessity you can use your student loan for. This covers on-campus dining options or off-campus grocery costs.
NC Assist Loan Can Help You Pay for College
If you need help paying for college, the NC Assist Loan may be a great option to help bridge the gap between the cost of attendance and your financial aid. Complete an application to see how we can help you reach your goals.
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