r6_philly wrote:Horchata wrote:I'm doing the mandatory loan counseling program with FAFSA. The specifically say:
You may use your loan money only to pay for authorized educational expenses at the school that certified your loan eligibility.
* Authorized educational expenses include:
o Room and board
o Institutional fees
o Dependent child care expenses
o Transportation and commuting expenses
o Rental or purchase of a personal computer
o Loan fees
o Other documented, authorized costs <-- this probably doesn't count
Investment = saving, putting into an account that bear interest. So while using the loan proceeds to buy a car is unethical, putting it in any interest bearing account is not. I am sure you put your proceeds in a savings account and use it as your year progresses. This would be the same (only in a different type of account).
Where in that list does it mention "saving"? Nobody lends money so the other person can save it. Additionally, a savings account is not the same as a mutual fund. Just because they bear interest doesn't mean they're the same thing. Would you pay taxes on your capital gains on your savings account for tax purposes?