06.19.09 | Can I use my Stafford loan to pay non school related bills?
No, you are not permitted to use your Stafford loan funds to pay non school related bills.
The Stafford loan is to be applied toward your cost of tuition, which is why the funds get sent directly to your school. You can not apply those funds toward your cell phone bill, car payment, etc.
I do, however, know someone who received funds from the school (through Stafford) and used them to purchase an iphone, but that is not the intended purpose. That iphone will end up costing her almost double the cost over the next 10-years with interest.
I caution all to be responsible with your Stafford loans funds. Some schools may not safe guard as well as others, but using your funds in an inappropriate manner will literally cost you dearly on the backend.
The Student Loan Help blog is sponsored in part by:
