How can you use your student loan for your personal expenses?

As a student, you may have applied for a student loan. There are two types of loans – Private and federal. You’re not always limited to utilizing that money only to cover tuition fees but you can use it for your things as well. It is very crucial to know how to efficiently use it. You should not use it for unnecessary things and must know how you can use your student loan for your personal expenses. 

You can use your student loan for your personal expenses only if they are necessary like groceries, traveling, buying textbooks, rent, etc. Further, we have discussed these ways in detail for your better understanding.

How can you use your student loan for your personal expenses?

How can you use your student loan for your personal expenses?

Both private, as well as federal student loans, can be used for your living expenses. Following are the areas where you can use it for yourself-

1. Tuition Fee

Of course, the biggest expense of a student’s life is tuition fees. Your loans must be utilized against them. It will help you to study without any financial problems.

2. Institutional Fees

If your institution/college has any kind of institutional fees then you can use your loan again for institutional fees. It may include lab, equipment, mess, or parking fees.

3. Personal Expenses

You can use your loan to cover your expenses like buying a microwave, television, radio, computer, etc. 

4. Room and Board

Your living costs including both on-campus housing and off-campus apartments that you buy on your own may be covered by student loans. 

5. Groceries

Groceries are the need for everyone. You can use your loan for buying food items like dairy products, poultry, meat, etc. You must involve food that is good for your brain.

6. Transportations

Of course, as a student, you need to use transportation to travel from your house to your school. Many expenses are related to transportation which may include the cost of fuel, gas, etc. 

7. Textbooks

You can use your loan amount on the books and essential supplies that are necessary for your study. However, you should try using free online platforms where you can get textbooks that are related to your subject in the form of PDFs. 

8. Childcare Expenses

Your loans may be used to cover childcare costs if you have a child who needs supervision while you are in school. Childcare expenses, such as paying a babysitter to watch your child while you are in class, may be covered by student loans.

Why should you not overspend on student loans?

You must not overuse the money that you get from your student loan. Usually, no one is looking at how you are spending your loan money. But yes you have some regulations that will be in your loans. It may prohibit you from using your loan for some specific things like buying concert tickets, dining out, etc. Also, even if you do not have such regulations, you must not do it. It is because you have to repay it along with the interest paid on it. However many times your loan may be repaid by someone anonymously.

Where you can not use your student loan for your private expenses?

As you have read about the areas where you can use your private expenses, you must not use them for some unexpected expenses. Now is the time to know where you can not use your loan money-

1. Entertainment

You must not use your loan for buying tickets for your entertainment. Remember that you have to repay your loan amount. So you must not use it for buying your tickets for concerts or subscriptions for your online platforms. Just try to use free online platforms to watch movies.

2. Traveling

Being a student you would love to enjoy a lot while traveling. You can use it to travel for studying abroad but you should not use it for your enjoyment.

3. Dining Out

Though you can use loan money for paying for your food you should not use it to eat outside. Also, you should not waste it ordering food online. 

4. Buying luxurious items

You should not buy any luxury cars, mobiles, machinery, etc for your personal use. Remember you can live without buying those costly mobiles and cars that may be very attractive to see. Also, you should not buy clothes from bigger brands. That will add the cost to your loan amount. 

5. Gym membership

You can be a fitness freak. But spending dollars for your gym membership must not be worth it. Don’t waste your loan money on your gym membership, some colleges may have gym services in them. Make proper use of them. 


You might have made a private or federal student loan application. You are not always required to use that money simply to pay for tuition. You are also free to spend it on personal expenses. Understanding how to use it effectively is essential. The money you get from your student loan must not be misused. It’s because you have to pay it back with interest. Therefore, it becomes essential to know how you can use your student loan for your personal expenses.

William Christie
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