Before we dive into the things to spend your student’s load, let’s take a brief look at the concept of loans. The money you borrow and you have to pay back with interest is known as a loan. And the earlier you understand who is giving the loan and the conditions of the loan the better because that way you will be extremely conscious and frugal on the loan. You will limit yourself from buying excessive liabilities. SO What Can You use A College Student Loan For?
You can use the college student loans for utilities, study materials, transportation, renting a house off-campus, medication, groceries, clothing, and more.
Spending The College Student Loans On
The Following Are What You Should Spend College Loans On
1. Renting a house Off-campus.
The fact that you have a loan for your college bills doesn’t warrant you to look for a house with a high price tag. A small house close to campus with a moderate price is ok.
2. Utilities.
Water is a necessity, so you buy the one for drinking and the one for washing and cleaning. Electricity bills, of course, have to be paid as and when due. You can optionally pay people to handle Sewage and sanitation. You can as well buy fitness equipment for training and keeping fit.
3. Transportation.
Now and then, you’re certain to move from one point to the other. So a transport budget is a necessity.
4. Study Materials.
The most important area to invest your student loans in is study materials and all the necessary equipment for your course of study. Buy them as early as possible and then you start grinding.
5. Groceries.
The college loans will be paid back by the students who are alive. So never hesitate to buy food and other house supplies to stay healthy and safe. Of course, you know, you can’t study on an empty stomach.
6. Clothing.
People usually assess you based on your dress. Take your time to buy; rainwear, footwear, underwear, activewear, formal wear, evening wear, etc.
7. Medications.
The moment you fall sick, there will be no Joy! You completely lose interest. Therefore, I strongly recommend investing in your health.
8. Other personal supplies used in cleaning and grooming oneself like toiletries, cosmetics, etc.
Loan Substitute For Living Expenses
There’s a natural desire to spend the money you borrowed mindlessly. This is prevalent among students, they tend to buy the things they don’t need with the money they don’t have. A better way to instill discipline while using your student loan is to find a part-time job where you earn extra income to support yourself otherwise you will end up in debt you can’t clear. And then the moment you start working to earn money you will value a single penny.
The Things You Should Not Use Your College Loans For
Nobody should dictate how to use your loans but the bitter truth is that the money you borrowed is never yours and it has to be paid back. And when your lender found out that you’re misusing the Loan they might terminate further disbursement.
So the following are the things to avoid using your student loan for:
•Constant food delivery.
• Expensive Elections like home theater, large television, etc.
• Entertainment like Netflix subscription, students’ night parties, etc.
• Sponsoring and taking care of your lover in college.
• Buying a bicycle, a car, or motorcycle
• lodging in hotels, unplanned travels, or vacations.
• Running a business
There is nothing wrong with having a small business while going to college but the fact is that there is a 99% chance of losing the money you invested in the business. Unless in rare cases, you can’t juxtapose your college engagement with running a business.
The Benefits Of Student Loans
•It reduces financial pressure on your parents. With the help of student loans, the financial burden of parents will be lifted thereby allowing them to invest in other productive ventures.
• It increases students’ level of concentration. When you have the means to take care of your college bills, it will give you more time to pay close attention to your studies. The mind will be focused on learning and there will be fewer distractions.
• It prevents the thought of Dropping out. What’s the point of going to college without money to cater to your expenses? You will not only be distracted in your studies but you will sooner or later get, flunked out of college.
• It takes care of your tuition fees and other unavailable fees on campus.
• It is a source of motivation. When you have your college loans intact, there’s an enthusiastic feeling that keeps you always pumped to get things done. Because you have nothing much to worry about. When you set academic goals, you will be driven to actualize them simply because you can get the materials when you need to.
Conclusion
It’s a great idea to choose where to invest your college loans, and while making the choices, try to reduce the unnecessary purchase of liabilities to have more than enough to save you in times of uncertainty. Your student loan can be sourced from various financial institutions, government and non-governmental organizations, and well-to-do individuals. In this regard, therefore, the loans gotten from the federal government of a country are referred to as federal student loans.