Student Loan Issues

[girlforgod73]

What is the name of your state (only U.S. law)? Indiana
Does my college have the right to demand proof of how I will be spending my student loan (government stafford loan) after they have been paid? We are supposed to be able to use the remainder for living expenses and they refuse to give this unless we give them proof of how we will be spending it. Can they legally do this?

 

[Ohiogal]

What kind of proof are they asking for?

 

[girlforgod73]

They want us to produce in advance of giving us the money, bills that need to be paid. If that amount does not equal what is available to us, they will only give the amount that can be proven. I can't prove what my gas is going to cost me driving back & forth to school ahead of time. I can't prove what my groceries for feeding my family is going to be ahead of time. It really is none of their business, in my opinion, anyways. It is my money that I have to pay back so I don't feel like I should have to prove anything to them.

 

[Ohiogal]

Truthfully you don't have to prove it.

 

[OP85063]

That is BS, ask the office if they will pay the loan back, if they are holding on to the money. Don't you school have a head person you can talk to.. NO not the dean. Find out and take it over everyone head until you reach the top of the chain, that's BS, ask them what will they do with the money?

 

[HomeGuru]

What is the name of your state (only U.S. law)? Indiana
Does my college have the right to demand proof of how I will be spending my student loan (government stafford loan) after they have been paid? We are supposed to be able to use the remainder for living expenses and they refuse to give this unless we give them proof of how we will be spending it. Can they legally do this?

**A: why, are you planning to go to Vegas on a gambling spree.

 

[Perky]

Universities are given discretion in disbursing the funds. It's not unusual for them to hold the money until the end of the school year, or even until you finish your studies.

http://www.staffordloan.com/stafford-loan-info/faq/

What can I use a Stafford Loan for?
Stafford Loans can be used towards the total cost of education - tuition, room and board, books and other education-related expenses.

When do I receive the Stafford Loan funds?
Your lender will disburse your Stafford Loan funds directly to your school in two installments – usually in the fall and winter semesters. Your loan money will be used to pay your tuition and fees. If you have funds left over, your school will credit your account or pay you directly based on your school's policy.