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?
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.
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.
What do you think? Answer below!