Can a Student Loan be Used for Outside Expenses as Well?
Student loans are meant to cover the cost of education, defining the cost of education can be tricky. With most students their expenses go far beyond tuition; they can include books, computers and even living expenses. Whether you can use your student loan for these outside expenses depends on what type of loan you are going to receive.
Private Student Loans vs Federal Student Loans
A federal student loan is most likely only going to be used on your tuition expenses. This is due to the fact that some federal student loans, like the Stafford or Perkins student loan might only help you pay some of your tuition, in other words it won’t cover the full cost of your tuition. In this case it obviously can’t help you pay for outside expenses because it does not even cover the cost of your tuition.
Private student loans can be much more flexible. A private student loan can be made to cover the entire cost of your tuition as well as cover outside expenses. You can take out a private student loan that is specifically designed to help cover the costs of books, living, computers and other education related costs. Depending on your credit score, which will affect if you can get the loan in the first place, you can get a private student loan in almost anyway you want.
Combine Your Loans
If you have received a federal student loan that does not cover the entire cost of tuition and still have outside expenses to pay there are still options for you to take. You can take out that federal student loan as well as take out a private student loan to help you cover the extra costs of education. If at any point all these loans become to much to handle you can consolidate your federal and private loans.
Your student loans can cover outside expenses, although usually only private student loans have that option. If you are really in need of money and your education costs will be expensive, your best bet is to combine federal student loans, private student loans and any grants you can get in order to have one smooth college education.