Did you know the refunds some students receive from financial aid are meant to be used for educational purposes only and not that new TV?
Keep in mind these refunds come from loan money and increase your loan debt that will need to be repaid. So rather than getting that TV, call your lender and make a one-time payment. Wouldn’t it feel good to reduce your loan debt while still in school? To put into perspective how these refunds affect you:
Let’s say you are getting $1000 per quarter in refund money and it takes you 12 quarters to graduate, you have just added $12,000 to your loan debt and an estimated $140 to your monthly loan payments when you leave school. The standard repayment option for student loans is 10 years. So $140 a month for 10 years equates to an estimated $16500 more for your education.
It is the financial aid department’s goal for you to use all of your financial aid for classes. Remember the extra money may mean you can take another class. Taking an extra class could allow you to graduate earlier and start working in your chosen career field sooner.
Talk to your financial aid advisor for more guidance!