As an alternative to spending that refund check without care, I offer some suggestions for when you find yourself with more financial aid than you need:
- Give it back.
- Only accept what you need.
- Hold the money in your account.
- Spend it on books or school supplies.
- Spend it on transportation.
- Spend it on living expenses.
Can you use financial aid for other things?
According to the Department of Education’s Office of Federal Student Aid, “All loan funds must be used for your education expenses.” Education expenses include tuition and fees; books and supplies; and general living costs. Other living expenses include meals.
What expenses can you use financial aid for?
Anything pertaining to your schooling is an appropriate use of financial aid. School supplies, a computer, travel costs to and from campus, books, tuition, childcare expenses (if applicable), and tutoring are all reasonable purchases for a serious student.
Does fafsa know how much money I have in my bank account?
FAFSA doesn’t check anything, because it’s a form. However, the form does require you to complete some information about your assets, including checking and savings accounts. Whether or not you have a lot of assets can reflect on your ability to pay for college without financial aid.
Can I use fafsa money for rent?
Student loans can be used to pay for room and board, which includes both on- and off-campus housing. So the short answer is yes, students can use money from their loans to pay monthly rent for apartments and other forms of residence away from campus.
Can I use leftover Pell Grant money?
If you have money left over from your Pell Grant, you can ask the school to hold the funds for you, or you can receive the remaining amount as a refund. Pell Grants go toward education expenses, except student loan expenses.
How is financial aid supposed to be spent?
Some schools give students more freedom — and more responsibility — to manage their costs with financial aid. The students are supposed to use the money from financial aid to cover expenses such as tuition, books, transportation, and room and board.
What should I do with my financial aid refund?
If your refund was from a student loan, and you don’t need the money after your tuition, room, and board, and books have been paid for, consider working with your school’s financial aid office to return the excess funds. This will reduce the amount you need to pay back on your loan after school.
What to do with leftover financial aid money?
If you have leftover financial aid money, you can use this money toward other education-related expenses. Be aware that the IRS will tax this money as income. Financial aid from grants, scholarships, and student loans will help you cover the costs of your education.
Do you have to take out loans for financial aid?
Most students combine sources of financial aid to cover their school costs, but if you receive enough money from need-based grants and merit-based scholarships, you will not need to take out student loans. In fact, you may even get enough award money that you have leftover financial aid.
