# Anyone know anything about student loans?



## Back to Nature (May 7, 2013)

So this year of college is totally covered by grants. However, I wanted to use my student loan on a down payment on a house. My school adviser says they probably won't give it to me for that, but it'd be the same as if I collected it for housing... And my aunt has used her loans on cars before. I'd ask her but I don't want to initiate conversation with her right now. So do any of you know how I could get it to apply to something other than books and classes? Thanks!


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## BrownSheep (May 7, 2013)

They probably won't allow it to go towards a house but they would allow it for an apartment.


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## Back to Nature (May 8, 2013)

I don't see the difference. Unless student privacy is not allowed. :/

Well, if I can't get it I'll just wait. I won't live in their tiny dorms/apartments.


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## OneFineAcre (May 8, 2013)

I think your biggest problem would be to get a mortgage when you tell them the source of your down payment is the proceeds of a student loan. And FYI, that's more than just my opinion, I work for a bank 

Even if they would, I don't think it is a good idea to borrow money, to put down to borrow more money.


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## CritterZone (May 8, 2013)

As a taxpayer, and one of the people paying your grants and funding your student loans, I have to say that a down payment on a house is not the intended use for a student loan.


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## Stubbornhillfarm (May 9, 2013)

As a mother of two daughters that went to very good colleges and now have monsterous student loan debt.  I would say to you,  use a student loan for your education and education only and only if you have to.  Repayment of student loans is a very difficult thing for many.


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## Back to Nature (May 9, 2013)

CritterZone said:
			
		

> As a taxpayer, and one of the people paying your grants and funding your student loans, I have to say that a down payment on a house is not the intended use for a student loan.


You aren't the only one who pays taxes. Any money I get from the government is nothing compared to what they're going to take from me when I start working, so technically, you aren't paying for my student funds, I am. Thank you for your opinion.


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## OneFineAcre (May 9, 2013)

Back to Nature said:
			
		

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It may very well be true that one day, the money you currently receive from the government in the form of the "investment" made in your education will be recouped in taxes you pay.  I certianly hope so.

That doesn't change the fact that the purpose of a student loan is not for you to use as a down payment on a house.  That's not an opinion, that is a fact.

In your OP you asked if anyone knew anything about student loans, and could a student loan be used as a down payment on a house.  The answer is no.


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## CritterZone (May 9, 2013)

Back to Nature said:
			
		

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From the Federal Student Loan Website on Legal uses of a student loan


What can I use my federal student loan money for?
You may use the money you receive only to pay for education expenses at the school that awarded your loan. Education expenses include school charges such as tuition; room and board; fees; books; supplies; equipment; dependent childcare expenses; transportation; and rental or purchase of a personal computer. Talk to someone at the financial aid office at your school if you need more details.

You are right, I am not the ONLY tax payer out there.  But with over 1 Trillion Dollars in current student loan debt, and a default rate in the double digits, my taxes do go to fund pell grants and student loans.  Just because your Aunt used her student loan for a vehicle, doesn't make it right.  Perhaps if you don't want an honest answer, you should state that in your question.


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## Back to Nature (May 10, 2013)

CritterZone said:
			
		

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I wanted an honest answer without the snide comments. Sorry if I didn't make that clear.



> In your OP you asked if anyone knew anything about student loans, and could a student loan be used as a down payment on a house.  The answer is no.


That's all I wanted to know. Thank you.


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## fluttervale (May 10, 2013)

You can't use your student loans for a down payment on a house, but you CAN use your student loans to pay your living expenses (room & board) while saving the money you earn at a job for a down payment on a house.

You will have difficulty getting a mortgage if you do not have a true source of income.

What you may use the loan for is also dependent on what type of loan it is, I assume you mean a Stafford loan.

I am also borrowing to go back to school and to pay my living expenses so I can stop dumping money in the rental money pit.  However, I have a full time position with full benefits, and grants only cover about 1/6 of my tuition.  Truthfully I am borrowing what I am, not only for that purpose, but so that if I cannot handle both I can cut back work instead of school.  I need to finish my degree so I can create a sustainable future for myself, and I can't do that if I am focusing on getting by paycheck to paycheck.

Coincidentally I paid back previous student loans in full, with interest.


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## Back to Nature (May 11, 2013)

fluttervale said:
			
		

> You can't use your student loans for a down payment on a house, but you CAN use your student loans to pay your living expenses (room & board) while saving the money you earn at a job for a down payment on a house.
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I decided to just stay where I am, build credit, and save money. I'll move when my fiance and I get married. (2-3 years)


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