Monday, September 13, 2010

What Expenses Do Student Loans Cover

Student loans may cover all of your educational textbooks.


A college education costs thousands of dollars -- room, board and tuition alone can run to about $7,000 a year on average at an in-state, four-year college. The majority of people seek financial assistance as a result and pay for some or all of their college through student loans. There are different loans available that cover different items related to your education.


Tuition


Most federal student loans are applicable to tuition. Tuition involves the fees to utilize resources at an academic institution and attend specific courses; these are the charges for instruction. Books usually are wrapped in these fees because they are necessary to complete the required coursework.


Fees


You typically can use student loans to cover educational fees. For example, you may be able to use some of your loan to cover the cost of a subscription to an online journal database. Colleges and universities often charge miscellaneous fees that cover the administrative cost of having you as a student.


Room and Board


Room and board is one of the most common items covered by both federal and private loans. Some student loans cover room and board only in the dorms. Other loans are less restrictive and allow you to use funds to cover rent in a regular apartment. This sometimes is more desirable if you are married, have children, or are a nontraditional student. In either case, the loan provider may opt to pay the university, college, or landlord directly instead of providing you with a check.


Miscellaneous Expenses


During your education, you may incur a wide range of miscellaneous expenses, such as the cost of a new laptop to write your thesis, your bus fare, or a backpack and clothes. Some less traditional miscellaneous expenses might relate directly to your major but otherwise would not be covered, such as the cost of a better, higher-quality instrument if you are a music major or the cost of taking the NCLEX exam if you are studying nursing. Other loans may cover the cost of child care if you are a parent. You usually can use private loans for these expenses. If you aren't sure whether something could be covered under your student loan, ask. You may be able to get it approved even if it is not on the formal list of covered expenses, as long as you can demonstrate why the item is necessary and helpful to your education.

Tags: student loans, loans cover, your education, cover cost, miscellaneous expenses, Other loans