Can you use student loans for pretty much any expense?

[auburnO5]

This might be a stupid question (if it is I'm sure someone on here will tell me), but in medical school, can you use your student loans however you want them? For stuff like car payments, help paying off a credit card, etc.. ?

I assume that you can, but I remember seeing on here a little while ago someone say that you could only use them for rent/food/medical school related stuff.

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[RogueUnicorn]

yes, you should get a check up front every semester that you can spend as you please. be warned.

 

[235009]

you can use them for whatever you want BUT you may not ask for more money if you run out (assuming you borrowed the full cost of attendance)

 

[Bacchus]

There are specific expenses you can't use them for. Most notably, I know you can't use them to finance a car but the acquired expenses are OK.

http://www.ehow.com/facts_5032564_can-student-loan-used.html

 

[RogueUnicorn]

who will find out?

 

[Bacchus]

I don't know. The banks will be distracted by the recent wallstreet hoopla.

 

[mvenus929]

They cannot be allocated in your budget to buying a car (via financial aid). They have to be allocated for other things, like paying for rent, etc. But, if you budget carefully, you should have no issue using your loans to make car payments. I highly suggest you pay down your credit card debt before you go to med school if at all possible, though. Paying off your credit card with student loans isn't exactly the best thing, especially since if you run out of money before your next check, you'll be resorting to using your credit card again.

 

[auburnO5]

They cannot be allocated in your budget to buying a car (via financial aid). They have to be allocated for other things, like paying for rent, etc. But, if you budget carefully, you should have no issue using your loans to make car payments. I highly suggest you pay down your credit card debt before you go to med school if at all possible, though. Paying off your credit card with student loans isn't exactly the best thing, especially since if you run out of money before your next check, you'll be resorting to using your credit card again.

I don't have any credit card debt, and I'm not planning on buying a car, I just couldn't think of any other examples off the top of my head 🙂

Thanks for the responses though

 

[caseofthemndays]

First, tuition is allocated to the school, then the school cuts you a check for whatever is left. It is your money, no one can tell you what to do with it.

 

[7starmantis]

First, tuition is allocated to the school, then the school cuts you a check for whatever is left. It is your money, no one can tell you what to do with it.

This.

 

[Bacchus]

No.

Directly from the MPN of the new Direct Loan Program:

6. Use of your loan money. You may use the
loan money you receive only to pay for your
authorized educational expenses or, if you are a
parent borrower, for the student's authorized
educational expenses for attendance at the school
that determined you were eligible to receive the
loan. Authorized expenses include the following:
 Tuition
 Room
 Board
 Institutional fees
 Books
 Supplies
 Equipment
 Dependent child care expenses
 Transportation
 Commuting expenses
 Rental or purchase of a personal computer
 Loan fees
 Other documented, authorized costs

 

[auburnO5]

No.

Directly from the MPN of the new Direct Loan Program:

6. Use of your loan money. You may use the
loan money you receive only to pay for your
authorized educational expenses or, if you are a
parent borrower, for the student's authorized
educational expenses for attendance at the school
that determined you were eligible to receive the
loan. Authorized expenses include the following:
 Tuition
 Room
 Board
 Institutional fees
 Books
 Supplies
 Equipment
 Dependent child care expenses
 Transportation
 Commuting expenses
 Rental or purchase of a personal computer
 Loan fees
 Other documented, authorized costs

I really don't see how they could keep track of this. I was able to use my undergrad loans for anything that I wanted. Why would medical school student loans be different? What if I need a new pair of pants?

 

[RevivedPreMed]

I really don't see how they could keep track of this. I was able to use my undergrad loans for anything that I wanted. Why would medical school student loans be different?

Lots of things aren't consistently monitored but the point is that you sign this agreeing to only use the money for those expenses. If they did find out that you used the money for other stuff, you'd have to pay it back immediately. Most of the time you wouldn't get caught but they have every right to screw you if you do.

A good example is lots of people probably fudge their taxes a bit, most people don't get caught, some unlucky people do.

 

[Bacchus]

I would consider pants an allowed cost. Its in the fineprint...they don't check it.

 

[RevivedPreMed]

I really don't see how they could keep track of this. I was able to use my undergrad loans for anything that I wanted. Why would medical school student loans be different? What if I need a new pair of pants?

If you read your promissory note I'm sure it has the same stipulations. My undergrad loans did.

 

[fatty19]

I know there are rules against using federal and student loan money for investment purposes outside of your education, but beyond that I think it's all good. Nearly every type of expense fits into one of the rather subjective categories listed above anyway. i.e. My roomate is an M2 and uses ~$5000 of loan money every winter break to travel...

 

[JoshUNCW]

Yes, there are those rules stated above.

But for all practical purposes, the money is yours to do WHATEVER you want. Once they cut you a check for your amount, they will never see what you buy with it. Ever. I'm sure the fact my roommate seems to spend half his loan money on weed is against the terms of his loans, but they haven't come down on his yet. Because they don't check up on you like parents asking where your allowance went.

 

[7starmantis]

Yeah, check with your specific loan, lots of programs have differing "rules". However it would be hard to show the dollar I spent on something was in fact from the loan and not my "other" money 🙂rolleyes🙂 or that what I spent it on was not in fact "other needs" relating to school.

There is a reason they allow you to take out way more than you need for tuition, its to live on.

 

[BlitzSleep]

They cannot be allocated in your budget to buying a car (via financial aid).

car=transportation


So go ahead and get that Porsche.

 

[Bacchus]

car=transportation


So go ahead and get that Porsche.

No.

http://www.student-auto-loans.com/students-loans-to-buy-a-car/

 

[Parts Unknown]

This might be a stupid question (if it is I'm sure someone on here will tell me), but in medical school, can you use your student loans however you want them? For stuff like car payments, help paying off a credit card, etc.. ?

I assume that you can, but I remember seeing on here a little while ago someone say that you could only use them for rent/food/medical school related stuff.

Just don't day-trade with your loans. I know a couple of people who made a lot of money doing that. And then they lost a lot of money. Oops.

 

[Geekchick921]

No.

Directly from the MPN of the new Direct Loan Program:

6. Use of your loan money. You may use the
loan money you receive only to pay for your
authorized educational expenses or, if you are a
parent borrower, for the student’s authorized
educational expenses for attendance at the school
that determined you were eligible to receive the
loan. Authorized expenses include the following:
 Tuition
 Room
 Board
 Institutional fees
 Books
 Supplies
 Equipment
 Dependent child care expenses
 Transportation
 Commuting expenses
 Rental or purchase of a personal computer
 Loan fees
 Other documented, authorized costs

Thank the Lord.

 

[235009]

No.

Directly from the MPN of the new Direct Loan Program:

6. Use of your loan money. You may use the
loan money you receive only to pay for your
authorized educational expenses or, if you are a
parent borrower, for the student’s authorized
educational expenses for attendance at the school
that determined you were eligible to receive the
loan. Authorized expenses include the following:
 Tuition
 Room
 Board
 Institutional fees
 Books
 Supplies
 Equipment
 Dependent child care expenses
 Transportation
 Commuting expenses
 Rental or purchase of a personal computer
 Loan fees
 Other documented, authorized costs

it seems like you don't understand the nuance here. These are the categories that your school can budget money for and the things you are allowed to borrow money for up to the amount that your school has allotted HOWEVER noone is going to track how you use the money that you get. If you don't spend $2000 on books or $1000 on clothes per year like your school has budgeted (which most students definitely won't) you can absolutely spend the money on other things (of course I don't suggest you call up the financial aid office and tell them that you are going on a vacation or buying a porche with your loan money but once it's in your bank account one dollar is indistinguishable from another and noone is going to be auditing your spending). The smart thing to do though would be to not borrow more than you need in the first place!