What You Should Use Your Student Loan Money For

Your student loan money is primarily meant to pay off certain expenses. These include:

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College Tuition

The majority portion of your loan will go towards your college tuition and fees. Prioritize this above all else.

Accommodation & Meals

Though significantly lower than college tuition, the second largest chunk of the loan amount will go towards paying for housing and meals. That includes all related expenses such as utilities and groceries.

Transportation

Student loan money can also cover costs related to transportation. This includes the cost of public transit if you live in an off-campus accommodation. If you live on campus, you can use the loan to pay towards gas and monthly parking pass for your vehicle. (It shouldn’t, however, really cover run road trips or spring break vacation plans).

Textbooks & School-Related Supplies

In addition to textbooks, you are also likely to buy more notebooks or additional supplies. Buying a new computer may also be an added expense if your computer crashes, breaks, or gets lost. All of these can be funded by your loans.

While you do not have to provide a detailed account of your expenses to your lenders, it is a good idea to spend your loan money cautiously. When you feel tempted to spend it on something that is not a school-related necessity, just remember that you will have to pay all of the money back with interest. That increases the cost price of everything you buy several times over.

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