Student Loan Expenses: What Counts As Educational Expenses?

Student loans can be used to cover a variety of expenses, including tuition, fees, and other related costs. The cost of attending college is more than just tuition and fees; it also includes textbooks, transportation, housing, food, and other living expenses. Students can use their financial aid funds, including student loans, to cover expenses that fit into the definition of the cost of attendance. It is important to understand that student loans are not free money and must be repaid with interest. They are restricted to uses directly related to education, including certain living expenses.

Student loan funds can be used for housing and food

Student loan funds can be used to cover housing and food expenses. The cost of going to college is about more than just tuition and course fees. It also includes textbooks, transportation, housing, food, and other living expenses. The cost of attendance, which is the amount it will cost a student to cover expenses associated with attending school, varies depending on whether a student is attending full or part-time, and whether they are living on or off campus.

Student loan funds can be used to pay for room and board, whether on or off campus. This includes utilities such as heat, electricity, and internet service. Students can also use their loans to cover the cost of a meal plan and other food expenses.

Students can use their loan money to pay for on-campus housing, which tends to be more affordable as it eliminates the need for furniture, security deposits, and utility payments. On-campus housing may also include meals. However, students should weigh the costs of living on and off campus and how much they can afford. Off-campus housing may be more expensive, especially in big cities, and there is often more competition for it.

It is important to note that students only have access to the part of the loan that is left over after the college deducts tuition and fees. Students may need to consider a part-time job or a private loan to cover the period before the loan is paid or after it is exhausted for the year.

While student loan funds can be used for housing and food, it is important to remember that this money is borrowed and will have to be paid back with interest. Therefore, it is recommended to only use student loan funds for essential expenses and to consider other options, such as savings or part-time work, for non-essential purchases.

Student loans can be used for textbooks and transportation

Student loans are intended to cover the gap between your savings, scholarships, and grants, and the cost of attending college. They are meant for expenses directly related to your education.

Textbooks

The cost of textbooks can add up, especially if you are taking a full course load and each class requires a textbook (or more). Textbooks are considered a qualified education expense by the U.S. Department of Education. This includes e-books, physical textbooks, and any other required supplies and equipment for classes, such as lab equipment, laptops, printers, notebooks, calculators, pens, and pencils.

Transportation

Student loans can also be used to cover transportation costs, such as a bus pass or parking fees. If you are travelling a significant distance to and from school, these costs can be covered by student loans. This includes gas expenses, public transit costs, or flights to and from school.

Other legitimate uses of student loans

Other legitimate uses of student loans include:

• Tuition and fees
• On-campus room and board
• Off-campus housing (rent, utilities, and groceries)
• Study abroad program expenses
• Childcare expenses
• Equipment and technology
• Disability needs
• Professional expenses, such as testing, licenses, and certification

Non-permitted uses of student loans

It is important to remember that student loans are intended for educational purposes, and using them for other purposes can lead to financial difficulties. Non-permitted uses of student loans include:

• Entertainment and eating out
• Paying down other debt
• Clothing and other shopping
• Services that are not required for your education, such as cleaners or dry cleaning

Student loan money can be used for dependent child care expenses

Student loans can be used to cover a wide range of education-related expenses, including child care expenses. The cost of attendance, as determined by each college, includes expenses associated with attending school, such as tuition, fees, and other related costs. This calculation also takes into account whether a student is attending full-time or part-time and whether they reside on or off-campus.

When you take out a student loan, the lender typically sends the funds directly to your school to cover tuition and other fees. Any remaining money after these deductions is then disbursed to you for other education-related expenses. While lenders generally do not track how you spend your student loan money, it is important to understand what constitutes "qualified educational expenses."

Child care expenses fall under this category of essential costs that support your educational success and attendance at school. Therefore, you can use your student loan funds to pay for dependent child care. This is applicable for both federal and private student loans.

It is worth noting that student loans are intended to cover basic living expenses, and there are limitations on how you can spend the money. For example, you cannot use student loans to purchase a car or a house, go on vacations, or hire a housekeeper. Additionally, misusing student loan funds can have financial, educational, and legal consequences.

Student loans can be used to pay for equipment or supplies

It is important to note that while student loans can be used to cover these expenses, they are still considered loan funds that must be paid back with interest. Therefore, it is recommended to only use student loans for essential expenses and to consider other options for non-essential purchases, such as getting a part-time job or using savings.

Additionally, each college or university may have different policies and calculations for their cost of attendance, so it is always a good idea to check with your school's financial aid office to ensure that your desired purchases fall within their approved list of expenses.

• Textbooks: Textbooks can be expensive, especially if you need multiple books for each class. Student loans can help cover the cost of textbooks, allowing you to get the required reading material for your courses.
• Computers and technology: Laptops, tablets, and other technological devices are often necessary for completing schoolwork. Student loans can be used to purchase these items, ensuring that you have the tools needed to succeed in your studies.
• Notebooks, pens, and other school supplies: Basic school supplies like notebooks, pens, folders, and paper can also be purchased with student loan funds. These items are essential for taking notes, completing assignments, and staying organized throughout your academic career.
• Photography equipment: If you are enrolled in a photography class or a similar course that requires specific equipment, student loans can help cover the cost. This could include cameras, lighting equipment, or any other specialized gear needed for your studies.

Remember to always use your student loan funds wisely and only purchase equipment or supplies that are truly necessary for your educational pursuits.

Student loans can be used to buy a personal computer

Most colleges will limit students to purchasing a computer once every four years, except in cases where the computer has been lost or stolen, and a receipt may be required. It is also worth noting that while student loans can cover the cost of a computer, they are not intended to be used for vacations, restaurant meals, or new clothes.

In addition to computers, student loans can be used to cover a range of other expenses, including:

• Textbooks and other required books
• School supplies and equipment
• Course materials
• Professional licensing and certification fees
• Living expenses, such as rent, utilities, and transportation
• Tuition and fees
• Room and board
• Meal plans and other food expenses
• School activity fees

When deciding how to use student loans, it is important to carefully budget funds to cover costs over the entire semester and to consider other options for additional funds, such as part-time employment or emergency aid programs offered by the school.

Frequently asked questions