Updated April 7, 2023 – Going to college isn’t just about earning a degree. It teaches life skills as well. As the most reputable apartment rental agency in West Chester with dozens of West Chester off-campus student housing rentals we know that it is imperative that students understand how to manage money and that it’s an important lesson that includes student loans and learning how to live within your means. Living expenses can be a big issue. Having extra student loan money left over after paying for your tuition, books, and school supplies is a bonus. There are pros and cons to using your extra money from student loans on living expenses.
Using Student Loans for Living Expenses
The Pros of Using Student Loans for Living Expenses
There a few pros of using your student loans for living expenses. It can help reduce the stress of not having enough time to study and may even give you a little extra spending money for eating out or having a little fun.
Lets You Study Instead of Work
When you use your student loans for living expenses, it will give you an opportunity to spend most of your free time studying. If you have the luxury of not going to work every day, you can spend more time studying and improving your grades.
Allows for a Few Luxuries on the Side
All study and no play can make for a very dull school year. Everyone needs a break. If you are using your student loans to pay for your necessities, you will have a little money available that you can use to go out with friends. Be responsible though! It’s important to manage your school money wisely.
The Cons of Using Student Loans for Living Expenses
On the downside of using your student loans for living expenses, once the money is gone you won’t be able to get any more until the next semester. Saving your student loan money is a great way to sure all of your educational expenses are paid in full.
Adds to Your Overall Debt That Has to Be Paid Back After Your Graduation
One of the biggest drawbacks of using your student loans for living expenses is that once you graduate, you will have to start paying all of it
back. If you borrowed enough to cover your living expenses, you may have doubled the amount of money you will have to pay back. Avoid borrowing any more than you absolutely need to keep your debt manageable after you graduate.
Disqualification When It Comes to Future Student Loan Needs
Misuse of student loan funds may disqualify you from being eligible for future student loans. Many lenders frown on using student loan money for anything other than school-related needs. While most lenders don’t check on how you spend your student loan funds, others may choose to track your expenses. If they discover any misuse, they have the right to ask you to pay the money back immediately.
Alternatives to Using Student Loans for Living Expenses
The two main alternatives to using student loans for living expenses is living at home or getting a job. Going to school and working a part-time job may be difficult in the beginning. Learning how to budget your time and your money is a part of life. It will reduce the amount you owe on student loans and will give you a chance to find a job in your chosen career field and gain experience.
The best way to save money while going to college is to live below your means. If you’re a West Chester University student, speak to someone at the Bursar office to help guide you through this process. Take your time and plan well! It’s a challenge, but it’s not impossible and will keep you from having to take on a full-time job while attaining your degree. Before you sign on the dotted line to get your student loan funds, have a plan in place that will allow you to be financially responsible and get out of debt quickly, saving you a lot of grief of searching for student loan forgiveness programs.