Students who are thinking about taking a student loan are usually unsure about what expenses a student loan will actually cover. Students understand that the loan will cover education related expenses, but it can be difficult to determine what qualifies as an expense. The easiest way to determine your borrowing limit is to look at your schools Cost of Attendance.
Here is a look at expenses that will usually be covered by a student loan.
The student loan funds will cover the college tuition each semester. This is the amount that is charged per credit or clock hour to enroll in classes and will vary depending on the type of college students attend.
A student loan will cover the cost of a dorm room and meals. Students that live off campus may be able to cover a portion of their living expenses with a student loan.
Many students will need to cover fees for student services on campus like health, technology, transport, student union fees, and activities and so on.
Books and Supplies
Student loans will generally cover the cost of textbooks as well as other stationery that the student will need.
Equipment will include items like computers, scientific calculators, printers and other materials that are needed for classes. Your student loan may also cover dorm necessities like a microwave, lamps, fridges and other items.
Students that do not live on campus can have their student loan cover the travel expense to and from campus.
Other expenses that can be covered by a student loan include study abroad trips, child care for dependent children, clothing and even cellphone plans.
A student should check with the lenders and with the financial aid office to discuss what expenses are covered by their loans.
Also students should keep in mind is that many of the expenses allowed under student loans are not considered a qualified education expense for tax purposes. In order to limit their tax liability, students should only borrow what is needed and speak to a tax professional for advice.