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I'm going into law school in the fall and I pay about $240/month for my car payment. My school's financial aid office says "you can't use federal loans for consumer debt." good thing i didn't tell her about my credit card....

I'm going full time day division and have been advised by several current students not to work under any situation unless I'm living under a bridge. How do they even know what I'm spending my financial aid on? I guess I'm kind of confused because I KNOW I'm not the only incoming law student with a car payment who plans on quitting their job and doesn't have 240 bucks a month in spare cash sitting around. Anybody with words of wisdom?

They won't. Once they distribute the money, spend it on whatever you please.

pay off your "consumer debt" with your excess student loans. no one will know.

money is money. i'm sorry if anyone disagrees. pay off whatever loan/card has the highest interest rate.

They're not telling you how to spend the money. They are telling you that they haven't and won't include your consumer debt in your student budget. So if you're keeping your car, that $250 is going to have to come out of some other part of your budget every month.