Using loan money for everyday expenses? Forum

[caleb003]

Hello,

I will be attending Law School in the fall and am receiving scholarship covering a large portion (90%) of my tuition. However, I just graduated from undergrad and have no money saved so will need to take out sizable loans for my living expenses. I was wondering what are the restrictions on what you can use the federal student loan money for. Like can I use it to buy furniture, clothes, bills, etc? Also, it says it can't be used for car payments or credit card bills, but can I use it to pay to fix my car or to pay my car insurance bills? Basically, I am wondering if you can use the money at your discretion as long as you pay it back or will expenses be monitored?

[lymenheimer]

You can use the loan money to pay for anything, even car payments (based on my understanding). You just don't get an adjustment for cc debt or car loans.

edit for misread

[xspider]

Basically this is how it goes for the majority of financial aid disbursement. Here is one half of the 20,000 dollar living expenses you need for first semester. It will be deposited into your account. Once it hits your account, frankly, you could spend that 10k on a luxury getaway.

Nobody will know what you spend it on or care to track it. Unless you go back to financial aid and ask for money. Just be sure budget for every dollar *Dave Ramsey voice*

[xspider]

You can use the loan money to pay for anything, even car payments (based on my understanding). You just don't get an adjustment for cc debt or car loans...I think the greater thing you should be worried about is taking out 90% tuition and likely full COL in loans.

He/she said they have 90% tuition scholarship. Not cost.

[lymenheimer]

You can use the loan money to pay for anything, even car payments (based on my understanding). You just don't get an adjustment for cc debt or car loans...I think the greater thing you should be worried about is taking out 90% tuition and likely full COL in loans.

He/she said they have 90% tuition scholarship. Not cost.

Ahh, gotcha. good call. Might have been ninja edit, or maybe I just misread.

[caleb003]

You can use the loan money to pay for anything, even car payments (based on my understanding). You just don't get an adjustment for cc debt or car loans...I think the greater thing you should be worried about is taking out 90% tuition and likely full COL in loans.

Thanks, I am only going to be taking out 10% of tuition. I'm looking about total debt of around 60k right now

[caleb003]

Basically this is how it goes for the majority of financial aid disbursement. Here is one half of the 20,000 dollar living expenses you need for first semester. It will be deposited into your account. Once it hits your account, frankly, you could spend that 10k on a luxury getaway.

Nobody will know what you spend it on or care to track it. Unless you go back to financial aid and ask for money. Just be sure budget for every dollar *Dave Ramsey voice*

Okay that makes me feel a lot better, thanks!

[eagle2a]

should probably get a job for the summer

[Barack O'Drama]

Hello,

I will be attending Law School in the fall and am receiving scholarship covering a large portion (90%) of my tuition. However, I just graduated from undergrad and have no money saved so will need to take out sizable loans for my living expenses. I was wondering what are the restrictions on what you can use the federal student loan money for. Like can I use it to buy furniture, clothes, bills, etc? Also, it says it can't be used for car payments or credit card bills, but can I use it to pay to fix my car or to pay my car insurance bills? Basically, I am wondering if you can use the money at your discretion as long as you pay it back or will expenses be monitored?

The Cost of Attendance (COA) covers the nine-month academic year, and includes educational expenses for the student, or basically the things you need to go to school and live, within reason.This will often include money for "transportation." There is also usually "personal" money allowed to you that I would assume you can use at your discretion for reasonable things. (bills, clothes, etc.) So, you are right in that you can use it to fix your car, buy furniture, and clothes. I don't think expenses are monitored. From experience I know people who have spent fed. loan money on the most imprudent shit. Its no surprise the day after the loan money hit at my UG last year, everyone had a hover board, vape, and Yeezys by Monday morning class. I didn't know you couldn't use it to pay car payments? I will have to look into that. But, you should be okay with living expenses, clothes, furniture, etc.

[Barack O'Drama]

Basically this is how it goes for the majority of financial aid disbursement. Here is one half of the 20,000 dollar living expenses you need for first semester. It will be deposited into your account. Once it hits your account, frankly, you could spend that 10k on a luxury getaway.

Nobody will know what you spend it on or care to track it. Unless you go back to financial aid and ask for money. Just be sure budget for every dollar *Dave Ramsey voice*

Hahaha

[caleb003]

Hello,

I will be attending Law School in the fall and am receiving scholarship covering a large portion (90%) of my tuition. However, I just graduated from undergrad and have no money saved so will need to take out sizable loans for my living expenses. I was wondering what are the restrictions on what you can use the federal student loan money for. Like can I use it to buy furniture, clothes, bills, etc? Also, it says it can't be used for car payments or credit card bills, but can I use it to pay to fix my car or to pay my car insurance bills? Basically, I am wondering if you can use the money at your discretion as long as you pay it back or will expenses be monitored?

Thanks, also do guys recommend taking out the loans for all 3 years with the first MPN or just taking it 1 year at a time? and if grad plus loans are needed can they be taken out at a later time than the original unsubsidized MPN?

[twenty]

Thanks, also do guys recommend taking out the loans for all 3 years with the first MPN or just taking it 1 year at a time?

I'm pretty sure you can only go a year at a time. The originator is going to send a big check to your school, which then sends the big check minus tuition and fees to you for cost of living.

[p1921]

Take it a year at a time, and you can use the money for whatever you want/need. Like the above poster said, you get a check at the beginning of the semester. You deposit the check. Use it to pay rent, gas, groceries, bar tabs, clothes, whatever.

Just keep in mind that you have to pay it back later, plus interest. So while you can take out the full amount they offer you, only take out what you will need. I recommend taking out a bit more than you have budgeted for (just in case of an emergency), and pay back what you have leftover at the end of the semester. Also consider that your 1L summer may be spent working for a judge or some other unpaid work, so your spring money may need to get you through the summer as well.

Another note on taking this a year at a time - you never know what your situation may be in a year. You may be in a position to clerk during 2L, have saved some money from a 1L summer, marry a sugar mama, win the lottery, whatever. Also if you take it a year at a time, you won't run up the interest on the money you've tabbed for your 3L year before you've had time to blow it at the bar.

[xspider]

Basically this is how it goes for the majority of financial aid disbursement. Here is one half of the 20,000 dollar living expenses you need for first semester. It will be deposited into your account. Once it hits your account, frankly, you could spend that 10k on a luxury getaway.

Nobody will know what you spend it on or care to track it. Unless you go back to financial aid and ask for money. Just be sure budget for every dollar *Dave Ramsey voice*

Okay that makes me feel a lot better, thanks!

No problem homie/homiette