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Don Said:student college loans?
We Answered:You can use student loans for whatever you wish. Quite often grants and scholarships must be paid directly to the school, not all but some. Student loans however come in the form of a check and work like most other loans more specifically like a general interest only loan. There is no bank that comes to mind that verifies what you do with the funds, but it is possible that one or two may be more interested where it goes, but generally banks don't care since regardless of where it goes, it ends up being an unsecured loan. That is the main reason interest rates are so high and you need a cosigner, because if you default on a loan, they cant take your college credits as collateral. Just keep in mind that if you do use it for rent or car, you still have to pay it back, and it will carry a huge amount of interest when you start to pay it down, so try and borrow as little as you can. most student loans are repaid at 3-4 times what the original loan amount actually was which can turn an $8000 loan into a $32000 debt. When you do get a check from the bank, you can deposit it into your checking account and use it to pay for rent or books or whatever, it is treated as regular cash, let me know if you need any other clarification.
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It is a good article for the students. With these students can get an idea what are the causes of getting these student loans. In this way they can make the best plan according to their financial requirements.
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