To know whether students can get a loan for living expenses while in college….Read on this article….!
A college student can get a loan for living expenses. First, you need to note that your school’s tuition fees are just a part of the educational payment. Most students cannot pay for their living expenses such as where to live and may require the help of governmental or private student loans to pay their bills. The college board posits that living expenses include feeding, shelter, and transportation, usually about 17,000 annually, as much as student loans are accessible to students. The fee for living expenses may vary according to the university involved and also the expenses incurred. It is also important to note that there are setbacks and barriers to keep in mind before using your student loan.
Is it possible to use your student loan for living expenses in college?
There is a general misconception that student loans should only be on academic bases. However, the college is also aware that students will need some extra funds to cover external expenses closely knitted to pursuing an education in a college. These essential expenses are why student loans are accessible to students for other costs such as shelter. You can get a student to fund other living expenses aside from your tuition.
What are the things you can use for your student loan?
The school will give an agreement form to fill out while acquiring a student loan. The document contains the loan terms, including the rates and the proper usage of the money. Aside from the tuition, there are several authorized usage of student loans. They are:
- Meals: this includes allowances that cover the payment of your feeding. Students are authorized to use their student loans on feeding.
- Educational materials and supplies: The student loan also covers extra supplies such as notebooks, stationeries, and software.
- Transportation: the student loan can also cover car maintenance, taxi, or bus fares. It is also vital to note that you cannot use the student loan to purchase a car or pay a car loan.
- Travel: A part of the loan can fund study abroad programs that offer exposure to other cultures and allow learning new things; non-essential trips are not permitted, such as spring break vacation.
- Students are allowed to purchase personal needs with a student loan to carry out school work and help with classwork.
- Professional certificates: Student loans can cover professional certifications and licensing to improve the learning experience of students.
- Housing supplies: such as sheets, towels, and so on
- Furniture: Such as couches, lamps
- Childcare: A student loan can cover child care such as hiring a nanny.
How do you make use of your student loan for living expenses?
As a student, you can spend your Student loan efficiently on housing and other necessary costs. Here are the points to ensure that you spend your loan on essential things.
Step1: Deposit student loan cheque
Immediately after receiving the student loan refund check from your school, you can quickly deposit the money into your bank account.
Step 2: Payment
The next step is to write a cheque for the amount you need. The same way you would from your bank account.
Step 3: Keep watch on your account balance
schools allot student loans once a year which means that one has to keep an eye over the account and secure funds to pay the rent for the whole year.
Step 4: Be Prudent
Student loans are usually for pressing needs related to pursuing education. For this same reason, you should avoid unplanned spending, primarily since you will repay the money. Instead, you should spend the money wisely on essential needs.
Effective financial management habits can stretch your student loan funds further, which means that you can borrow lesser amounts and use a part of the money for optional loan payments in school.
Can I be penalized for misusing the student loan fund?
Student loans are meant to be utilized for associated expenses and are essential living expenses. However, suppose the school eventually discovered that the fund was misused, such as buying designer wear and spring vacation trips. Then, the chances are that the school officials might terminate the loan and might also give the student a deadline to pay the money back.
It is rare for a student loan lender to check what the money is used for or that you are spending the money inappropriately. However, it suggests that schools are not actively involved in tracking how you spend your money if the school finds out that the money has been misused.
Conclusion
Every student will need funds to pay bills and carry out some projects at one point in their schooling year. Getting funds at the right place and when required can be challenging for most students. Knowing that the school has a loan provision for students that covers the basic needs of every student is an excellent relief to many students which will in turn make them focus on their studies.
