Question


chi

What should I use my loan for?

I am a freshman in college and signed up for FAFSA. With that I have gotten all my tuition paid for this semester and next with CAL-Grants. I also had money left over to pay for all my books and school supplies. I live with my parents off campus rent-free. However my financial aid office advised me to apply for a loan and it was approved for a total of $5,500. Initially I did not know my tuition would be completely paid for which is why I applied for the loan. What would I need to use the loan for since there is no turning back and I already signed the MPN? Should I use it for buying a car which I am in dire need of? or should I use it for next years tuition just in case I don't get lucky with CAL-Grants next time around? There are two separate loans both are Student Stafford loans with Bank of America, subsidized and unsubsidized. Will they make me to turn in receipts to show what I buy? Oh goodness I do not know what to do.

2 months ago - 2 answers

Best Answer

Chosen by Asker

Stafford loans can be used only "towards the total cost of education - tuition, room and board, books and other education-related expenses." I would save it for any educational incidentals that come along. And, no, very rarely are you asked to turn in receipts.

by kariba

2 months ago

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Other Answers

Put it in a savings account. Do not use it for anything but school expenses throughout the year. Remember this is a loan and must be repaid

by sassy25- 2 months ago

I would take the loan and probably set it aside to pay it back since you do not need it. OR just wait for next years tuition like you said.

by Ruby- 2 months ago