Aside from the obvious obsessions (home theater, first and foremost) what else are you using your student loan money on. As I will be graduating after this semester, student loans will no longer be available for me to abuse (I mean use). As for me, this is how I used mine. Freshman Year-Down Payment on 1999 GMC Sonoma Sophomore Year-Samsung 47" Widescreen HDTV Junior-Down Payment on 2002 Pontiac Grand Am Senior Year-HK AVR525 (got myself for Christmas) and SVS sub (yet to be purchased).
As a person who relied extensively on student loans to make it through college, I have to say that I'm a little offended by the question. For me the answer was tuition and books, without much left over. If all of the student loan money were used by people purchasing home theater equipment, there might not have been any money left over for me and I'd still be working at some meaningless job. And don't even get me started on people that abused their PEL grants. Because I earned a whopping $8,000 the year before I started college (I was living on my own in Houston, so it's not like I could save any of it), I wasn't eligible for a grant until my final year. Meanwhile, others around me where going on cruises, etc.
Mathew, did you even use ANY of that loan for school? To me that's no different than abusing the welfare system. What the hell is the point of a school loan if it's not used FOR school?
Before anyone else goes off, a. it is a loan, and as such, must be paid back. In that regard, frivolous use of the money is no different than jacking up a credit card. b. many people obtain loans above and beyond tuition books to assist with "living expenses." How you define that is up to you. I didn't go to college, so I never got the opportunity to put myself in the hole before I even got started, like Matthew is doing. I'm just not getting where all the wrath is coming from- after all, the piper will be paid. We're not talking about grant money here, I hope. Todd
Todd, a student loan is secured by the federal government and I believe that they limit the amount of money that they secure. So unless I'm mistaken (which may be the case), one person misusing the money could potentially limit the money available for another student. For me, student loans were my ticket out of poverty and into middle class, so I take them pretty seriously.
Stafford loans can be both secured and unsecured. I'm guessing we would be talking about secured here (where the govt pays the interest while you're in school, and backs against default). There must be a limit (they use the phrase "goes to those in greatest financial need" in their description), but the only people I've known to get rejected were those with "big money" parents trying to hide assets.
This is just sickening. I wasn't even able to get enough loans to cover my tuition, let alone worrying about what to do with what's "left over." There was a lot of sacrifice to try and make up the difference, and I'm just now seeing the light at the end of the tunnel as far as repayment. So this is what today's college kids do with their financial aid, huh? My opinion of today's young people just went a notch lower. Yes it may be a loan, and it may be paid back, but if you don't need the money, leave it there to be used by someone who does.
I'm thankful I haven't had to take out loans yet because of scholarships. What little money I need to cover rent and living expenses comes from my weekend job. I do have a friend who applied for a student loan for the 2002-2003 school year to pay for performance car parts and plans to use the money he recieves in the next term for car repairs. I'm indifferent towards this, but I can see how some of you are upset about misuse of student loans. Once I enter med-school in 2004, I will be taking out some loans, however. The amount of which will probably be......a lot.
OSAP. The acronym is supposed to stand for "Ontario Student Assistance Program" but in my university dorm building it stood for "Ontario Stereo Acquisition Program". -JNS
Am I the exception to "today's students"? Seriously, they have all gone right back into tuition until my residency becomes permanent in August. They didn't give me enough to buy books. If I had extra money left over, that would go toward room & board. As it is, I have to pick up a job with enough hours to survive. Hard enough to rent movies as it is right now.
I'm lucky and have parents who can help me out if I can't afford the tuition rates (up $575/semester in just 3 yrs). If I did get financial aide it would go straight towards tuition, I don't see how you can have enough left over for a decent HT.
I guess my question is: If you are spending your student loan money on home theater stuff and cars, how the hell are you paying for school? Mommy & Daddy? Jeez, I remember times in college where I could barely come up with my tuition, even with financial aid, loans, a partial tuition scholarship, and working 20-25 hours per week. Car? I took the subway for a year, and finally was able to buy a $750 car to get to work (This was in 1995). Illegal or not, loans or not, it's still an abuse of the system. I could have used more loans while in college for legitimate purposes. Obviously that money exists, it's just being spent on home theaters and cars. How about pride? I'm proud of the fact that I worked hard to pay for and obtained my degree. Are you proud wasting student loan funds?
In my own defense none of the loans are grant money. I get NO other financial aid at all and it was my decision to use it for my own purposes. Perhaps I overstated it when I said that they were for me to abuse. It is just like a credit card and I have EVERY intention of paying them back. I chose not to use credit cards as the interest rates are way too high. I am an only child raised by a single parent and the loans were the only thing they would offer me so I had no choice but to take them. I would also like to reiterate that I am going to a public school so the tuition is less than $2500 a semester. I take out $3500 a semester total, so the only thing I really have to play with is $1000 left over. I neglected to mention that I also work 35 hours a week, so I treat that extra $1000 each semester as money to play with. Jonas, my mom doesn't help me financially with anything. I have been living on my own since I was 17, and I think it was unfair of you to make a comment like that. I am now 22 and just beginning to start over with her.
I have no opinion on what you decide to use your student loans for. I used mine for tuition and for a used car I needed to get to and from work. As long as you don't default on them then I don't see where you're doing anything wrong. The only advice I have is to try to pay them off as quickly as possible. The low monthly payments mean that the repayment period is very long and your account will be resold numerous times -- each time you're likely to get screwed by some sort of paperwork foul-up by the new owner and getting your credit report straightened out isn't fun.
Ah, but what sort of food, what sort of board? Given some of the conditions and vitriole I tolerated in the Navy, I might consider anything more than a box and ramen noodles "excessive." You see how easy it is to arbitrarily draw the line?
