Q&A: Are there limitations as to how you use the money from a student loan?

Question by kay.: Are there limitations as to how you use the money from a student loan?
I’m applying for a federal student loan, not only to help me pay for school, but to pay off a $ 2000 credit card debt I’ve had for the last 3 years. Is this legal? Does the federal government view credit debt as another living expense? Because it pretty much is, right?
TO CLARIFY:

I am a part-time student, full-time employee. I am an adult, and have no need to learn “adult lessons.” I only wanted to consolidate my own debt, but changing the “lender” to one with a lower interest rate. I understand that student loans do no apply to bankruptcy, but I do not plan on ever having to deal with that, seeing as how I am only doing this student loan thing once and plan on paying it off within 1 year of graduating. My only question is whether this is legal.

Best answer:

Answer by Sharon M
Well, I don’t believe that your debt is a consideration for getting a student loan. What concerns me is that you are getting one loan to pay off another. You do know that regardless of your circumstances, you can only erase student loan debt by paying it? If you must someday declare bankruptcy, and you’re current spending habits suggest that you will, student loans are not part of the bankruptcy. Only borrow what you absolutely need, stop charging stuff, and pay off the credit card debt by getting a part time job.

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15 thoughts on “Q&A: Are there limitations as to how you use the money from a student loan?”

  1. You are doing a foolish thing and trying to justify it in your mind.
    You are free to spend th money any way that you see fit.Yet,all that you are doing is shuffling your debt.You will still owe it,you will simply owe it to someone else.
    The federal government views you as a borrower,that is how you are seen.
    If you play games with this,you will learn a very adult lesson.Your credit will be a wreck and your tax refund will be garnered if you do not pay the debt yourself.
    You are hereby advised to rediscover cash.If you do not have it,pay down your debt until you do have it.

  2. MUST HEAR SEN SANDERS!
    FYI: 234 Republicans; 201 Democrats; 0 Independents. Senate.
    Membership …
    Did you know the public servants all the dick’s WONT COMPROMISE
    234 (R) with and without penis. Ya’;; know they BANKED $175,000 LAST 5
    =$800 K plus? Know how many day’s they worked in worst modern day economy?
    YOU BETTER KNOW BECAUSE THEY WORKING LESS THAN 2 DAYS A WEEK? FOR 5 DAMN
    YRS THEY HATE BLACK PRESIDENTS DO MUCH! YA’LL KNOW ALL THE “BITCHES WITH
    DICKS WALKED OUT YESTERDAY WALKED IN WORST MODERN DAY ECONOMY! KNOW HOW
    MANY X’S WALKED OUR LAST 5 YRS? YOU DNT KNOW “YOU ARE 100% THE DAMN
    PROBLEM!” ALL OF EM “PISSES SUPREME COURT TIME” SO WHAT TO ALL TEAMS DO ”
    WALKED OUT FRIDAY RAISE STUDENT LOANS? Pisses at MARIO the CUBAN TASMANIAN
    DEVIL aka “gang of 8 (R) hate just not more than Obama?” Walk out? LIKE
    ANY NBA TEAM? ANY NFL TEAM? LIKE TEACHERS IN CLASS DONT MAKE 1/4 YOU DICK’S
    IN DC BANKED LAST 5 YRS 2 DAMN DAYS A WEEK? LIKE BOSTON STRONG DID? LIKE OK
    TORNADO’S? LIKE ALL DID TUSCALOOSA TORNADO’S 2011? “TURN YOUR BACK LIKE
    DAMN COWARDS?” ALL THE DICK’S ALL I SEE THEIR “SORRY ASSES WALKING
    DIRECTION LEAVING DC. HOW WE TEACH OUR CHILDREN BE DEFIANT DON’T SHOW WORLD
    1ST TIME 250 DAMN YRS IN DC? LIKE WE TEACH OUR CHILDREN DONT OBEY LAWS
    WALK OUT DO AE WE WANT F YOU GOOD OLE GOP WAY” SUPREME COURT EQUAL MARRIAGE
    RIGHT’S ACT AND omg Obama’s GANG OF 8 approved IMMIGRATION ACT So they went
    home 

  3. The impact of $1.1 Trillion of Student Loan Debt in the US.

    According to a recent report released by the New York Fed, this student
    debt burden has nearly tripled since 2004.

    According to the Congressional Budget Office, the Federal Government is
    expected to make a profit exceeding £50 Billion from student loans – higher
    than the profits made by Exxon Mobil, the most profitable company on earth.

  4. Without education people lack critical thinking skills. Surprise, just what
    the GOP wants, gullable people who buy the conservative propaganda.

  5. It cost me $80k to study to become a foreign language teacher. I couldn’t
    find a job in that field that would pay enough to keep up with the
    repayment on my loans. So I work in a totally different field, that has
    nothing to do with my education. This is going to become a huge crisis
    eventually, and it’s only a matter of time before defaults outweigh the
    number of folks actually paying back. This will be much worse than the
    housing crisis, sadly.

  6. I was addressing MrMeepzor and his comments toward Senator Sanders, I’m one
    of the ones that believe the interest rate for student loans should be the
    same as the corporate banks got when the government “loaned” them billions,
    it was somewhere around 1%,, or less.

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