What Do Student Loans Cover?

by Juliet Terrill | In Financial Empowerment, Homepage Slider, Pick of the month | 15 February 2021

What Do Student Loans Cover?

Student loans can be a great option to help you pay for school. In addition to scholarships or financial aid, student loans can help to fund your education. You can apply for student loans from the federal government or private lenders, such as MPOWER. Many students, however, are uncertain about what the student loans can be used to cover. Here’s a step-by-step breakdown of common student expenses: 

 

  • Tuition Fees
    • Most student loans are used to pay for tuition each semester. Loan funds are typically sent, or disbursed, directly to the university to be applied to your outstanding tuition balance. Any remaining amount is then passed along from the school to you, the student. Now it is your responsibility to use these funds wisely and responsibly for other education costs.
  • Housing Expenses
    • Student loans can cover the cost of living for either on- or off-campus housing. So whether you’re living in a dorm or an apartment, you can use these funds to help pay your rent. Additionally, if you have utility bills, they are considered valid costs related to your education.
  • Travel 
    • If you live off-campus and need to commute to school, the cost of transportation can also be an education expense. Whether you choose to commute via a vehicle, bus, train, or ride-sharing services, these are all travel expenses. The funds can also be used for flights home on school breaks.
  • Books and Equipment
    • Books for school can be pretty expensive, and you’ll need other supplies as well, such as computers, printers, notebooks, etc. Your student loan can be used to help pay for all of these expenses – they are required for education after all!
  • Miscellaneous
    • Your student loan can be used for any other expense related to living and studying abroad. Things like meals, clothing, cell phone plans, campus activity fees, and child care if you have children. 

It’s important to note that each school has a different policy specifying how funds from a student loan can be used. Some programs will cover all student expenses, whereas others only cover tuition, food, and on-campus housing. We advise students to check with their school administrator on how your school approaches student loans.

While it might feel exciting and overwhelming to receive a loan and have a sudden influx of funds, keep in mind these funds are enabling your long term goals. To set yourself up for future financial success, it’s essential to pace your spending and budget responsibly. Your loan will require monthly payments, so make sure you account for these as well.

In conclusion, student loans are a flexible funding option for undergraduates and graduates alike! With a little bit of homework, you can figure out if they are the best option for you.

Interested in a student loan? MPOWER offers no-cosigner loans to over 350 schools in the U.S. and Canada. Check your eligibility for a MPOWER student loan or Refer a Friend who could benefit.

Author: View all post by Juliet Terrill

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