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Legal Use of Loan Money

Discussion in 'Medical Students - MD' started by DoctaJay, Mar 7, 2007.

  1. DoctaJay

    DoctaJay bone breaker Moderator Emeritus 10+ Year Member

    3,012
    35
    Jan 23, 2005
    San Diego
    I was reading the stipulations of the master promissory note for my stafford loan and they said that you can only use your stafford loans for educational expenses like:

    • Tuition
    • Room
    • Board
    • Institutional fees
    • Books
    • Supplies
    • Equipment
    • Dependent Child Care
    • Transportation
    • Commuting Expenses
    • Rental or Purchase of personal computer
    • Origination free or guarantee fee
    • Other document/authorized costs

    Are there any situations in medical school where you need to spend your loan money on things are aren't approved? If you are using a healthcare plan other than the one provided by your school, can you pay for that through loans? Is purchasing a used car authorized under transportation? Is there really any way to track how you spend the money; meaning do we have unrestrained freedom to spend our loan money as we please, as long as it is paid back?
     
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  3. FizbanZymogen

    FizbanZymogen Guitar Hero Champion 5+ Year Member

    511
    0
    Nov 1, 2005
    D.C.
    dude they say the same thing in undergrad but that didn't stop have my school from buying a Xbox 360 and whatever else they felt like. Pay your tuition/rent and then live. They cannot track how you spend the money.

    peace
     
  4. Critical Mass

    Critical Mass Guest

    1,713
    2
    Feb 23, 2007
    I think that necessary "stress relief" sessions can be legally covered by loan money too. I get a medical student discount as long as I don't ask what anybody's real name is.
     
  5. jonb12997

    jonb12997 I'm a doctor!! 10+ Year Member

    if it's a student account refund check made out to you and ends up in your bank account for your living expenses, you can spend it on whatever your little heart desires... if you want to drive a hummer and can do it on the budget they set up, more power to you! that is to say, I've NEVER heard of the "stafford loan police" coming and auditting what someone spent their money on...
     
  6. Dr.McNinja

    Dr.McNinja Nobel War Prize Winner Moderator Physician Faculty 10+ Year Member

    8,706
    4,242
    Aug 2, 2006
    Texas
    Even if you have the full amount of school paid for, you can still take out the full amount the feds will give you. Thus, you can invest it in the stock market for all they care. You're going to have to pay it back eventually, with interest, so whatever you want to do with it is your business.

    We've bought 2 cars now.
     
  7. crazy_cavalier

    crazy_cavalier T3-Weighted 7+ Year Member

    Gotta agree with the above... :thumbup:

    Putting some of the loan money towards a used car is definitely grounds for "transportation" use and a totally valid form of using part of your educational loan.
     
  8. turkleton

    turkleton Capeless Crusader 2+ Year Member

    347
    0
    Dec 26, 2006
    Transportation also counts for the taxi cab from the city after spending way too much money at way too expensive of a bar... good times.
     
  9. Dr.McNinja

    Dr.McNinja Nobel War Prize Winner Moderator Physician Faculty 10+ Year Member

    8,706
    4,242
    Aug 2, 2006
    Texas
    Also, I use money for research into my own liver enzymes. As in, how high will they bump after Cuervo night?
     
  10. LJDHC05

    LJDHC05 Former Chicken Slayer 5+ Year Member

    891
    3
    Jun 23, 2005
    I've paid for beer with mine.

    And smokes.

    And hookers.
     
  11. DoctaJay

    DoctaJay bone breaker Moderator Emeritus 10+ Year Member

    3,012
    35
    Jan 23, 2005
    San Diego
    lol, ok, I get it; the money is mine and I can do whatever I want with it. Thanks everyone!!!
     

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