As education expenses continue rising, millions of students turn to student loans to help ease some of the burden these costs can bring. Federal and private student loans offer numerous advantages, including flexible repayment plans and lower interest rates. Many borrowers may not realize what education-related expenses you can use the funds for.
When you apply for federal student loans, the school receives the funding and applies it first to your tuition and fees, plus room and board. Any leftover funding gets dispersed to you, but this doesn’t mean it’s time for a shopping spree either. Here’s a closer look at how you can use your student loans.
What Expenses Can You Use Student Loans For?
The bottom line is, you can use student loans for a wide variety of education-related expenses. Whether you’re pursuing an undergraduate or graduate degree or using federal or private student loan funding. Before you use any leftover funds though, consider what else you can use it for and that supports your education needs.
- Tuition and fees: The primary purpose of student loans is to cover tuition and mandatory fees required by your institution, including costs for courses, labs, and other academic services.
- Room and board: If you live on campus, student loans can pay for dormitory fees and meal plans.
- On- and off-campus housing: On- or off-campus students can use loans to cover rent, utilities, groceries, and other housing expenses.
- Books and supplies: College textbooks are also covered by student loans, which can help cover the cost of required books, software, lab equipment, and other course materials.
- Childcare: If you need childcare arrangements so you can pursue your educational requirements, then you can use student loans to cover these costs.
- Technology: Laptops, tablets, software, and other essential technology needed for your studies and school work can be funded by student loans, as long as they’re necessary.
- Transportation: You can use student loans if you need help paying for a car, bike, or public transportation to get to classes, or other commuting expenses.
- Housing supplies: If you need help with expenses for housing, such as towels, bedding, and other essentials.
- Study abroad programs: If you participate in a study abroad program approved by your school, then student loans can cover travel, lodging, and program fees.
Make Wise Choices With Student Loans
Although there’s an incredible amount of flexibility with student loans, there’s also an equal amount of responsibility needed. It’s essential you only use the funds for education-related expenses and borrow what you need. You may consider other ways of paying for expenses such as getting a part-time job, budgeting, or applying for grants. Using the funds for unnecessary purchases only puts you further in debt.
Secondly, if you use student loan funds for non-education expenses and the lender finds out, then you can face steep penalties and interest charges. Staying disciplined and borrowing as little as you need is the best course possible.
Did you know Space Age Credit Union offers a variety of student loan options with funding for a wide range of professions? Contact our student loan lending experts today to find out more.
