Using student loans to pay for unrelated items is nothing new… “Nearly nine out of every 10 full-time Youngstown State University students receive financial aid promising to use these funds for their education, but many freely admit they use proceeds for everything from car payments to clothing, and officials seem powerless to stop the practice.
YSU Senior Amanda Morgan started college in 2006 and each year borrows $8,000. Like most college students in the nation, she receives a combination of grants and student loans. After paying her yearly tuition of $7,000, Morgan says she has $1,000 left, which she uses for books and shopping. One year, Morgan received $12,000 in student loans; after paying off her tuition, the extra $5,000 was used to purchase a car.
Morgan is not alone.
As college students across the nation close out their first half of fall studies, many are receiving refund checks from federal student loans that have sufficiently covered their tuition. Refund checks, or reimbursement checks, are also sent out to cover the balance difference caused by a student who has elected to drop one or more classes…”
Tags: applying for student loans / student loan debt / student loans
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