Do people generally (in your experience or just opinion) use college loan $ for living expenses and

[6packofun]

other non-academic expenses?  Like, do people get themselves a used car or pay rent with school loan money?

 

I'm not asking whether they *should*, I'm asking if it's fairly common to do so or if there are rules against it.  I only got one small loan (under $2k) while I was in college and I did use some of it for an unexpected car repair but the rest was for books and so I was not a typical school loan recipient, I think, at least not compared to today.  

 

(This was just sparked from a conversation I had with other moms, no other reason!  lol)

[Ottakee]

Yes. One family I know is using the loan to help pay for daycare while mom is in nursing school and dad is working.

[heartlikealion]

Dh did. But I don't know what is the most common. I actually quit a job so we could move for his practicum (unpaid) years ago and we were scraping by on student loan money and savings before our rent went up and I had no choice but to get a job (which was too little too late and we were floundering).

 

There was another purchase made long before that with student loan money that I was very upset about and caused a huge fight.

 

It would be my guess that it's more common with housing costs than other items... but that's just a guess.

[MinivanMom]

Yes, it's pretty common.

[vonfirmath]

My guess is more common with housing costs because, if nothing else, "Room and board a tthe university" if one is living on campus.

 

[Spryte]

I went to college on grant money and loans. I worked, but I also took a lot of credit hours and could not work enough to support myself without using loan money for expenses. My financial aid advisor said it was not unusual and was the one to suggest it.

 

It's not ideal, but I don't think it's unusual.

 

ETA: I'm talking about very basic *living* expenses - no frivolous shopping.

Edited July 6, 2017 by Spryte

[Crimson Wife]

Yes, and I don't have a problem with people choosing to do so for basic living expenses.

 

What I have a problem with is using student loan money for frivolous expenses like travel, parties, etc. My DH got so much flak from his business school classmates for not participating in expensive social events & travel because he wanted to minimize his student loans. About half his class came from super-wealthy families (one of Mitt Romney's sons was the year ahead of him) and most of the other half used loans to "keep up" with their richer classmates. :thumbdown:

[Crimson Wife]

With Federal loans, there is a limit on how much one can borrow (the school determined budget) but with private loans, I don't think there is a ceiling.

[Tap]

Sometimes.  

 

It depends on the person and situation.I know some people really struggle to work full time and go to school too, so they need the money to pay their living expenses in school. Others, work or live with family and can keep living expenses out of their loans. 

 

 

I do know that most of the people who have combined them, regret it when they start paying the loan payments later. LOL  They often wish they would have done more.....summer jobs, waiting a year/working to save some money before college etc. 

 

I work with some pharmacists who come out of pharmacy school $500,000 in debt.  They make $100,000 per year, but also have $1500/mth in student loan payments. 

Edited July 6, 2017 by Tap

[kitten18]

We (dh and I) did. Once we deposited our student loan checks it just went in with any other money we had from our parents and jobs.

We definitely took out more money in loans than just to cover tuition.

[lllll]

Back in the 80's I got a small student loan and we bought a used mobile home to live in after our apartment rent doubled the first year we were there. So we lived in it the entire 6 years of dh's grad school. 5 miles from the university,in gorgeous woods. Then we sold it when dh finished and we moved.

 

Different time and place though.

[OH_Homeschooler]

In undergrad, it went directly to the school to cover my tuition. I lived on campus and had a meal plan so there were not extra expenses.

 

DH used it more for life expenses while he was in grad school. As a T.A. he only got paid a small stipend, and his department really frowned upon taking outside jobs, so he really needed the loans to help cover rent and other expenses. It was perfectly acceptable. I'm glad he took the loans instead of charging up credit cards, because the interest rates are so much lower.

[Carrie12345]

I know dh did back when costs were lower and interest rates were better.  My sister also did, but more than a decade later with bigger impacts.

 

I knew nothing of these things when I was in school.  Scholarship + loans paid tuition, room, and board.  I paid for books with my meager savings.  I ate on my meal plan and slept in the dorm.  I received a care package here and there and a few bucks once in a blue moon.  I was a teenager with no car and no children.  I'm glad I didn't know about "extra", because it would have been frivolous in my case.

[catz]

Yes. One family I know is using the loan to help pay for daycare while mom is in nursing school and dad is working.

 

:iagree:  I think people do this all the time. A single emergency situation is understandable when you have the loan.  

 

This was a story our local paper did on debt of grad students.  The student profiled has a husband working as an engineer and is taking out 75K PER YEAR to attend vet school (ETA - school expenses are 58K).  The earning potential does not justify that level of debt at all.  That is easily more than a first mortgage over several years.  I think college costs are a HUGE problem.  That said, I do think it should be required for students to sit down with a financial advisor to paint what the payback picture and earning potential is going to look like on huge student loans vs. chosen career path vs. cost of an education.  Far too few people really get this.   

 

http://www.startribune.com/debt-swallows-up-students-at-vet-grad-professional-schools/275017651/

 

And I'm not at all saying people shouldn't take out loans at all.  But I think debt level to take on should be weighed super carefully.  I have a 16 year old and this is at the forefront for us right now. 

Edited July 6, 2017 by WoolySocks

[nixpix5]

We did when we were in graduate school. DH and I were in a unique situation because we had our older boys at 17yo and 19yo which means we did all of college as parents living on our own. We did work while we attended college and during undergrad we had scholarship and grant money that worked well. Graduate school was a different situation and we had to take student loans at that point. It just wasn't feasible to work in a neurobiology program because the student was expected to take a full load of classes and be in the lab working the rest or the time. The stipends we received just wasn't enough with a family so student loans really helped bridge the gap. We also utilized ebay back in its heyday when auctions were still booming.

 

I've known many other people who utilize their loans in a similar fashion. The bottom line is they have to be paid back at some point so if someone is spending it on frivolous things it will eventually bite them in the butt.

[Murphy101]

Absolutely normal!

 

And sadly for most at some point it is also absolutely necessary.

[gardenmom5]

yes - I've observed students using school loans to improve their car, or standard of student living.  including vacations . .

 

2dd only used her grad school loans for tuition, books, (school and her employer both provided a bus pass) . . she worked, drove a beater car, and lived extremely low.  she had HALF the loans on average than her classmates.

[SparklyUnicorn]

Only once did I have extra money from a school loan.  I used it to buy a computer. 

 

 

[gardenmom5]

 

 

I've known many other people who utilize their loans in a similar fashion. The bottom line is they have to be paid back at some point so if someone is spending it on frivolous things it will eventually bite them in the butt.

 

and why we have people whining they can't afford to pay back their loans, and defaulting on them.

[Guest]

Oh yes. I've known several people who funded their ENTIRE college experience, to include all living expenses, with student loans. Not wise, IMO, but to each their own. Sometimes I think they feel they have no other options. And sometimes they might be right.

Edited July 6, 2017 by Kinsa

[mommyoffive]

and why we have people whining they can't afford to pay back their loans, and defaulting on them.

 

For real. 

Honestly I don't know if I think this should be allowed.  Taking out student loans to go on vacations or buy stuff?  

 

I have never heard of this.   Never did it.  

 

So everyone on here that did it, do you regret it?  

 

 

I regret having college loans.  Especially being a SAHM.   Wish I would have gone to community college.  I can't imagine having more loans for other expenses that at 18-22 i thought was a smart idea.

[elegantlion]

I am. I weighed my options carefully. I would have had to work full-time to cover living expenses AND do school. To do so would have meant my grades would have suffered and I would have lost merit aid - I well know my physical and mental limits. I'm not thrilled about having so many loans, but in my situation it was the best option and the gamble is paying off in my academics. We live on a pretty low monthly income though. 

 

Ds did not take a loan his first year, he took one last summer to help finance his study abroad to Japan and is still currently debating on next year's loan offer. So, in a sense, I am bearing the higher end of loans so doesn't have to. All of my loans are federal, no outside loans, so that feels like a better risk to me. 

 

Our school has a financial aid seminar you have to attend before you can accept any loans. Then each year you have to go to the FAFSA website and input your entire loan amount, monthly payments amount after school, and what income you need to afford those payments comfortably before you can accept each years loans. They also have exit loan counseling which is required in order to graduate. So students should have a really good idea of how much their owing throughout their schooling. 

 

ETA: I do receive a large amount of merit aid, so I'm not having to do max loans each year. 

Edited July 6, 2017 by elegantlion

[6packofun]

 I would have had to work full-time to cover living expenses AND do school. To do so would have meant my grades would have suffered and I would have lost merit aid - I well know my physical and mental limits. I'm not thrilled about having so many loans, but in my situation it was the best option and the gamble is paying off in my academics. We live on a pretty low monthly income though. 

 

 

 

I absolutely get it.  I've been thinking about this for my two oldest who are working nearly full-time but not going to school. They are nearly financially independent other than living on their own (they pay us a very low rent) but are basically just scraping by.  I can easily see adding school into their lives as totally overwhelming.  I know other people can do it, but not everyone can and I'm fine with it.  They can live here as long as they want as long as they are on, shall we say, a *trajectory* towards *something*.  LOL

[Guest]

Yes, very common.

[Southern Ivy]

I did. Probably the least responsible decision of my life. 

[SparklyUnicorn]

For real. 

Honestly I don't know if I think this should be allowed.  Taking out student loans to go on vacations or buy stuff?  

 

I have never heard of this.   Never did it.  

 

So everyone on here that did it, do you regret it?  

 

 

I regret having college loans.  Especially being a SAHM.   Wish I would have gone to community college.  I can't imagine having more loans for other expenses that at 18-22 i thought was a smart idea.

 

Well, like I said I bought a computer.  No I don't regret it.

 

 

[amy g.]

I know people who use student loans for living expenses. It is almost as though they don't understand that it will all need to be paid back.

 

I also think the schools sometimes make it way too easy for students to overborrow.

 

My oldest had a full merit scholarship to community college. It was supposed to include all tuition, fees, books and a monthly stipen.

 

Right before the semester started, we got a call that she owed money and was going to be dropped from her classes. Fortunately, she had signed paperwork saying the school could discuss her business with me. It turned out that the school computer showed her owing $12. Dh had 15 minutes to rush to the school and pay the $12 before they dropped her.

 

While I was on the phone with the school, they kept saying that they strongly suggest that she decline the loan.

 

I had no idea what they were talking about.

 

Because her file showed a deficient, they had issued her an $8,000 loan. I had to log into her account and actively decline it or it would have gone through even though she never applied for any loans.

 

Sure enough, a month later, we got a refund check in the mail for $12.

 

Students should not have to opt out of debt.

[AnnE-girl]

Law students are expected to take out loans for living expenses in addition to tuition, etc. Even part time jobs are generally discouraged for full time law students. At least they were when DH was in school. That said, aside from buying my engagement ring with his tax refund, he lived very frugally during law school.

[Southern Ivy]

For real. 

Honestly I don't know if I think this should be allowed.  Taking out student loans to go on vacations or buy stuff?  

 

I have never heard of this.   Never did it.  

 

So everyone on here that did it, do you regret it?  

 

 

I regret having college loans.  Especially being a SAHM.   Wish I would have gone to community college.  I can't imagine having more loans for other expenses that at 18-22 i thought was a smart idea.

Absolutely regret it. That, plus credit cards during college, I brought over $100K into my marriage. We've worked hard to get down to under $30K, but my debt completed hindered my ability to stay home with my daughter when she was a baby. 

 

**I didn't go on vacations, but I did use it for living expenses and a computer for school (because we did not have one at my house at that point). I worked as well, so I really didn't need to use it for living expenses, but I was young and idiotic. I think I didn't really understand interest accrual and loan payments. I just saw lots of money and thought "I'll have an amazing (teaching haha) job and be able to easily pay that off." *eye roll*

Edited July 6, 2017 by Southern Ivy

[kitten18]

For real.

Honestly I don't know if I think this should be allowed. Taking out student loans to go on vacations or buy stuff?

 

I have never heard of this. Never did it.

 

So everyone on here that did it, do you regret it?

 

 

I regret having college loans. Especially being a SAHM. Wish I would have gone to community college. I can't imagine having more loans for other expenses that at 18-22 i thought was a smart idea.

Well, people can budget their student loan (and any other income) in different ways. One person might live by themselves or in a more expensive apartment, buy pricier groceries, or eat out more and you would see that as living expenses.

My dh lived in fraternity house (cheaper than the dorms) and then when he moved out of there he had several roomates in apartments that were the cheapest they could find and was super frugal when buying food. By being cheap in those ways he managed to go on spring break (road trip with a bunch of guys and they all stuffed into a hotel room) and one semester he bought my engagement ring.

 

 

ETA - we have no regrets about our loans. We still lived very frugally in college (and after) and paid our loans off in about 7 years (before we started trying to have a baby).

Edited July 6, 2017 by kitten18

[Southern Ivy]

Law students are expected to take out loans for living expenses in addition to tuition, etc. Even part time jobs are generally discouraged for full time law students. At least they were when DH was in school. That said, aside from buying my engagement ring with his tax refund, he lived very frugally during law school.

The teaching program I was in made us sign contracts forbidding us from working during our student teaching which was a full year. :/ 

[catz]

Well, like I said I bought a computer.  No I don't regret it.

I think that is almost a school expense.  That's the kind of thing that makes sense to purchase.   That's a huge difference than taking out thousands over for a higher standard of living or spring break. 

 

[elegantlion]

For real. 

Honestly I don't know if I think this should be allowed.  Taking out student loans to go on vacations or buy stuff?  

 

 

 

So everyone on here that did it, do you regret it?  

 

 

 

 

I'm still in the midst of it, but entering my final year of undergraduate work. I had to take max loans my first year because I applied too late for any other aid. In my case (not a typical one, I'll give you that), it was either get loans and go to school or start working at Walmart - like the only decent retail store in the town where I lived. I might have been able to move to a different job after a while and get maybe $9 - $10/ hour. That would be it, I would have been stuck there. It's hard to network and find better opportunities in a town of 10k and getting to the nearest big town to even interview for different jobs would have been a burden. 

 

As my loan numbers sit, I could buy a fairly decent car with that amount. That has been my gauge of sorts. I will probably never get a new car in my life because of loans, but I'm not stuck working retail either. (nothing against retail, worked in it for year, but at 46 with crappy knees, I know standing all day and maybe having to get permission to leave a register to pee would have made me bitter and angry). 

 

For me, the loans have been absolutely a way to work my way out of the crappy, crappy, crappy situation my ex left me four years ago. 

 

Have I gone on vacation with my loans? No. But I have used them to help pay for conferences, which have been my only "vacation" for years. Do I buy stuff? Yes, not extravagant stuff, but yes, clothes, backpacks, books, food, etc. School is my job, Loans are part of my "pay." The school charges more for room and board than I pay living in my own house. 

 

I spent years helping ex invest time into his business. I spent years investing time and money into raising ds. These current years are time I'm spending investing into myself and my own future. 

 

I do think it is important to consider what someone is sacrificing when they take out loans. I'm sacrificing that new car. Currently, I have one car that is paid for and in good working order. It should several more years, at which point, I will replace it with an inexpensive used car. By the time that one craps out, my loans should be mostly paid for. Then I'll buy another inexpensive used car. 

[Ali in OR]

If you've seen the type of student housing that has been built over the last 20 years, you know that the developers are expecting to be paid with student loan money. I'm talking about the almost luxury apartment complexes with 4-6 bedrooms and 4-6 baths, recreational facilities, nicely appointed, etc. If students didn't have loan money, they would not be able to build and fill so many of these complexes.

[SparklyUnicorn]

I think that is almost a school expense.  That's the kind of thing that makes sense to purchase.   That's a huge difference than taking out thousands over for a higher standard of living or spring break. 

 

Yes.  Not to mention I met my husband on-line with that computer.  :lol:

 

An ex boyfriend also gave me money towards the computer (this was back in the day when a computer cost like 3K).  And the same ex bought me luggage that I used to meet my now husband's family.  See...it was meant to be!  LMAO

[elegantlion]

I will say most of the students I hang out with have been very responsible about loans. One recent graduate is dealing with her 1500 in loans, another has 500, one is using military benefits, and the other has worked a full and part time job to afford school and live on his own. These are conversations that students are having at my school, even the more traditional aged students. 

 

[OH_Homeschooler]

For real. 

Honestly I don't know if I think this should be allowed.  Taking out student loans to go on vacations or buy stuff?  

 

I have never heard of this.   Never did it.  

 

So everyone on here that did it, do you regret it?  

 

 

I regret having college loans.  Especially being a SAHM.   Wish I would have gone to community college.  I can't imagine having more loans for other expenses that at 18-22 i thought was a smart idea.

 

Nope. Like I said, DH used the loans to help with expenses because he just had a small stipend as a grad student and was not allowed to take on extra work. Instead of charging up his credit cards for survival (he did not live extravagantly), he paid for living expenses with his loans. He'd still be paying back credit cards, but instead he's paying back very low-interest loans, and his rate is guaranteed until they are paid off.

 

And knowing him, if he had resorted to credit cards he would have bitten off more than he could chew. Instead, he knew he had his loan budget to follow and he stayed within that. And his current salary was worth taking on debt. He would have paid off his loans in full by now, but the interest rate was so low and there was no need to rush, so he went for an extended repayment plan. 

[Tree Frog]

:iagree:  I think people do this all the time. A single emergency situation is understandable when you have the loan.  

 

This was a story our local paper did on debt of grad students.  The student profiled has a husband working as an engineer and is taking out 75K PER YEAR to attend vet school (ETA - school expenses are 58K).  The earning potential does not justify that level of debt at all.  That is easily more than a first mortgage over several years.  I think college costs are a HUGE problem.  That said, I do think it should be required for students to sit down with a financial advisor to paint what the payback picture and earning potential is going to look like on huge student loans vs. chosen career path vs. cost of an education.  Far too few people really get this.   

 

http://www.startribune.com/debt-swallows-up-students-at-vet-grad-professional-schools/275017651/

 

And I'm not at all saying people shouldn't take out loans at all.  But I think debt level to take on should be weighed super carefully.  I have a 16 year old and this is at the forefront for us right now. 

 

DD will be attending med school in 2 years. She has been able to attend undergrad without loans, but there is no way for us to pay for med school. She'll be taking loans to cover living expenses through med school. We have talked to her about what kind of a job she needs to look at when she graduates and how much of her potential income will be eaten up by loans. We're estimating about $200,000 in loans, depending on the school she attends. She is in Texas, so the cost is relatively low. She can't stop med school mid way through because she won't be able to get a job that will pay enough for her to pay the loans off. She said residents are paid about $50,000/year, so we went through her likely costs of living, including housing, car, food, utilities, and loan repayment. She realized that even though $50,000 sounds like a lot of money, it will be barely enough to cover her expenses and her loan, but not any vehicle repairs, emergencies, or fun. She is looking at other options, either scholarships, programs that repay loans, or the military to help fund her schooling.

 

As a parent, I don't like dd taking out so much. I don't like that once she starts, she must finish. That's an awful lot of stress during an already stressful time. I'm hoping that she'll be able to earn enough as a potential OB/GYN that she can repay the loans quickly, but even quickly is relative. However, she is going into this with her eyes open and knows approximately what her monthly payment will be. I can't imagine the shock a student taking loans must feel if s/he had no idea what the monthly payment would be!

 

My dh's niece went through dental school just before the bubble burst in 2008. Many of her peers took out the max loans to be able to purchase a house, but are now stuck because they are underwater, have to repay mortgages and student loans. My SIL said most of those students couldn't afford to stay in the house and had to foreclose.

[Alice]

I did in medical school. There are no dorms so you have to live somewhere and it's pretty much impossible to work while in med school. First year I lived in a 700 sq ft apartment that I shared with another girl and the other three years I lived in a small house with 3 other people so I wasn't exactly living the high life. Loans also were what paid for food and any other activities. Going to the movies, etc. Essentially I borrowed a set amount at the beginning of the year that was calculated based on living expenses in our area and then budgeted from that for the year. 

 

I also took out an extra "travel" loan 4th year of med school to be able to travel to interviews for residency. You have to interview and typically at least some are far enough away to not be able to drive, plus hotels for the stay. I can't remember how much the loan was now...I'm going to say something like $1500. I interviewed at about 12 places which was pretty typical. Of those 4 were far enough away that I had to fly. While interviewing I was also on a surgical rotation so I often only had about 36-48 hours off so couldn't choose to drive. 

 

I don't regret those loans. I didn't really have another option. My family did not have any money for me to attend med school and it's not possible to work at the same time. I graduated with about $160K total debt and was able to pay it back fairly quickly even though I work only part-time in a relatively lower paid specialty. I do know people who borrowed too much or chose to live less frugally once they graduated and had a harder time financially. 

 

 

 

 

Edited July 6, 2017 by Alice

[FaithManor]

I do not know any who did. They had to use student loans to pay the college in order to stay in school.

[JFSinIL]

I did for my doctoral program at NU.  I had a fellowship that covered tuition, and could cover  food by working p/t, but needed the student loan $ to cover the dorm room and books.

[Crimson Wife]

For real. 

Honestly I don't know if I think this should be allowed.  Taking out student loans to go on vacations or buy stuff?  

 

I have never heard of this.   Never did it.  

 

So everyone on here that did it, do you regret it?  

 

 

I regret having college loans.  Especially being a SAHM.   Wish I would have gone to community college.  I can't imagine having more loans for other expenses that at 18-22 i thought was a smart idea.

 

I don't regret that my DH used loans to finance grad school. He tripled his salary compared to what he was making before. Fortunately he was able to pay them off before the Great Recession decimated his industry.

 

If we had not been frugal (living with my parents, skipping those expensive social events & trips, etc.) during his grad school we would've been in big trouble. He only took out loans to cover the gap between grant aid & unavoidable expenses like tuition, books, commuting costs, etc.

 

[gardenmom5]

I did in medical school.

 

1dd did a lot of research for financing grad school.  there are fields where grants are available - and fields where all you've got are loans because they expect you to make that money back . . like med school, and dental school.

we've a family friend who is in dental school now - all loans.

2dd was able to live super low - but there were no grants for pharm school.  but, she also makes more in a year than her entire loan load.  she'll have hers paid off this fall.  (she's been out for two years.  they were also paying out of pocket for dsil's master's program.)

 

I have less concern about loans in grad school - because there are programs you simply have to take out loans, but theoretically will be working in a field to make enough to pay them off.  I'm more concerned about undergrads majoring in things that dont' pay much - and not giving any thought as to how they will pay them off.

 

right now - 1ds is really stressing about where he'll be in the fall - 'cause, "loans".  (the "more affordable local school" won't let him know until next week (hopefully) if he's in or not.)

[gardenmom5]

I did in medical school.

 

1dd did a lot of research for financing grad school.  there are fields where grants are available - and fields where all you've got are loans because they expect you to make that money back . . like med school, and dental school.

we've a family friend who is in dental school now - all loans.

2dd was able to live super low - but there were no grants for pharm school.  but, she also makes more in a year than her entire loan load.  she'll have hers paid off this fall.  (she's been out for two years.  they were also paying out of pocket for dsil's master's program.)

 

I have less concern about loans in grad school - because there are programs you simply have to take out loans, but theoretically will be working in a field to make enough to pay them off.  I'm more concerned about undergrads majoring in things that dont' pay much - and not giving any thought as to how they will pay them off.

 

right now - 1ds is really stressing about where he'll be in the fall - 'cause, "loans".  (the "more affordable local school" won't let him know until next week (hopefully) if he's in or not.)

[Crimson Wife]

 I also took out an extra "travel" loan 4th year of med school to be able to travel to interviews for residency. You have to interview and typically at least some are far enough away to not be able to drive, plus hotels for the stay. I can't remember how much the loan was now...I'm going to say something like $1500. I interviewed at about 12 places which was pretty typical. Of those 4 were far enough away that I had to fly. While interviewing I was also on a surgical rotation so I often only had about 36-48 hours off so couldn't choose to drive.

 

Travel for job interviews is not what I was talking about when I criticized DH's classmates. He actually did go on a couple of the school's job-hunting trips (Silicon Valley and London). The career placement center had arranged networking events with employers so it was not like he was jetting off on vacation.

 

[mommyoffive]

Sounds like almost everyone on here did it in a responsible way and it worked out.   But I bet there were people who did not thinking about the future of what it really meant.  And did it not to focus on school and stuff.  

 

I feel a bit bad for the those people.  I know a lot of teens don't really understand the loans and what it means to them later in life.  Or people who didn't have anyone really tell them what they were signing.  

[MotherGoose]

Yes. My SIL took maximum loans for every year she was at a for profit school that is now closed, specifically so that she didn't have to work while taking her two classes each semester. All the loan money that wasn't used to pay for school was used to replace her income since she quit work to go to school.

That is awful! Schools should not allow/encourage that sort of financial irresponsibility.

[Bootsie]

I did not take out loans as an undergrad, but I did as a graduate student.  I had an assistantship that covered my tuition and a small stipend and I lived frugally so that the stipend covered most daily living expenses (rent, food, electricity).  For the most part, I treated the loan money as an emergency fund so that if something happened (medical expenses, etc.) I would not have to tap high-interest credit cards.  I did use the loan money to pay for things that I saw as an "investment" in my future career; printing and mailing resumes (back in the days that was done), buying an interview suit...

[Guest]

If you've seen the type of student housing that has been built over the last 20 years, you know that the developers are expecting to be paid with student loan money. I'm talking about the almost luxury apartment complexes with 4-6 bedrooms and 4-6 baths, recreational facilities, nicely appointed, etc. If students didn't have loan money, they would not be able to build and fill so many of these complexes.

It depends on location. Most of the students in my dc's complex are quite wealthy and the cash is coming from the parent. However, he isn't top of luxury student housing, he has no pool, fitness room, game room, or bus to campus. Those run another 200 a month. In his complex, he has central air, w/d in unit, off street parking, snow removal, and 24/7 maintenance and individual leases. We were surprised to find that old starter homes not updated since the forties are charging the same, but with group lease...with one bathroom for 4-8 students, on street parking, no central air, no w/d, no dw, no internet, no snow removal, and very bad drug and violence problems in the neighborhood. Both were just under the U's dorm price and less than fifty a month difference in rent. No brainer on where to live.

[Ravin]

We lived on student loans while I was in law school. Part of the time we had a subsidy for daycare through a grant program at the university (technically for DH, he was an undergrad and it was only for undergrad students). We also had medicaid and food stamps.

 

There were specific things I could request a loan increase for, like necessary car repairs (had to keep vehicle running to get to/from school), a laptop (one time), and child care. I did this knowing I'd be paying for it all eventually, either through public service or by repaying the loans, but with the financial position we were in before going back to school, the pile of debt was the best option for improving our circumstances long-term.

 

As an undergrad, I did not take out many loans for day to day living expenses; I had the GI bill and PELL grants and DH was working, but child care did come out of my financial aid (though the cost was low as I received a subsidy through the university). I worked and paid the bills through part of DH's undergrad, so his loans were just for school. As a grad student, he has mostly taken out as little as he can as I can now pay all our monthly bills with my salary. He does pay for things like campus parking, and usually a dose of car maintenance when he gets a financial aid check though.

 

 

Edited July 6, 2017 by Ravin