Law School Discussion

How are loans paid out?

How are loans paid out?
« on: April 03, 2007, 12:57:07 PM »
I learned on here that you can take out loans for up to the cost of living that the school dictates. My school dictates about 50k per year, with tuition only being about 27k. I have a 12k scholarship, so I will take the 20k out from the government and the rest with GradPlus.

My question is how are these loans paid out? For the most part, I need the loans to pay for my off campus housing. How is this money given to you to pay the rent? I've seen posts on using it to pay for a car, which is not allowed, but I do not need 20k to pay for my apartment for the year. I probably won't take out the max I can... but how do you get the money to pay your expenses once approved for the loan?

ptown

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Re: How are loans paid out?
« Reply #1 on: April 03, 2007, 01:12:21 PM »
generally the money is transferred by wire directly to the school, then they cut you a check for whatever isnt tuition due.

The Pookie

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Re: How are loans paid out?
« Reply #2 on: April 03, 2007, 01:16:17 PM »
darn, there goes my plan to spend my tution money on cocaine and fur coats, living expense money will have to do.

Re: How are loans paid out?
« Reply #3 on: April 03, 2007, 04:58:11 PM »
generally the money is transferred by wire directly to the school, then they cut you a check for whatever isnt tuition due.

All right... so they will be able to cut the fall semester's check as soon as they get the transfer? my mother will cover me (somehow) for the first month's rent. I think I could even charge it on a credit card if need be... and then I'll have my cut of the check?

So my question is... how do they know you are spending the money on rent? Couldn't i theoretically spend some of the money to pay for my food or a car payment or something? Or are minimal expenses considered ok?

Re: How are loans paid out?
« Reply #4 on: April 03, 2007, 05:05:26 PM »
generally the money is transferred by wire directly to the school, then they cut you a check for whatever isnt tuition due.

All right... so they will be able to cut the fall semester's check as soon as they get the transfer? my mother will cover me (somehow) for the first month's rent. I think I could even charge it on a credit card if need be... and then I'll have my cut of the check?

So my question is... how do they know you are spending the money on rent? Couldn't i theoretically spend some of the money to pay for my food or a car payment or something? Or are minimal expenses considered ok?

Once you get the check you can do whatever you want with it. Theoretically you could live somewhere rent-free and have virtually no expenses, but you'd still be able to get the full cost of attendance.

ptown

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Re: How are loans paid out?
« Reply #5 on: April 03, 2007, 05:17:39 PM »


So my question is... how do they know you are spending the money on rent? Couldn't i theoretically spend some of the money to pay for my food or a car payment or something? Or are minimal expenses considered ok?

cost of attendance isnt JUST for rent, it is for all the costs of living.  yes, that includes food, travel, misc. expenses.  your disbursement will cover all that.

Re: How are loans paid out?
« Reply #6 on: April 03, 2007, 05:22:34 PM »


So my question is... how do they know you are spending the money on rent? Couldn't i theoretically spend some of the money to pay for my food or a car payment or something? Or are minimal expenses considered ok?

cost of attendance isnt JUST for rent, it is for all the costs of living.  yes, that includes food, travel, misc. expenses.  your disbursement will cover all that.

Each school should have estimates on how the money should be allotted just to give people where the money is expected to go. My school has a room+board category, health insurance, transportation, and personal/misc.

Re: How are loans paid out?
« Reply #7 on: October 24, 2019, 07:46:33 AM »
It depends on what exactly loan you will have. There can be different situations. For example if you will use bad credit loans, after approving money will be sent to you card. Then you will be able to spend them on your needs. Usually it is the most fast and comfortable way to get a loan.