What Expenses Can Be Covered Under a Student Loan?
What Expenses Can Be Covered Under a Student Loan
?The two basic terms that are of high importance in obtaining a student loan is COA and EFC. You may wonder what these two terms are: EFC is the Expected Family Contribution that your parents can contribute towards your student loan and COA is the Cost of Attendance which covers the entire costs entailed in your study period.
EFC terms are mostly the same for all colleges or schools but the COA varies according to the type of institution the student prefers to study at. The COA covers areas like the tuition fees of the course, the board and lodging expenses incurred by the student while studying (this may be for the hostel or off campus), transport, books and other requirements related to the specific course, personal expenses, cost of computer if the course requires it, miscellaneous expenses etc. There are other costs like providing for an attendant if the student is disabled.
If the student can prove that the expenses incurred by using credit cards to pay for course related expenses then credit card bills can be covered under the COA loan terms. But at the same time credit card expenses are not usually allowed. The check for the related term of the course goes directly into the college or school account; any left over after the tuition fees and room rent and food will be given to the student to meet other expenses.
If the student faces a financial problem that is not covered under the prescribed loan, they should approach the college or school's financial head and discuss the problem. This may be beneficial in certain times when the financial head may try to help if not monetarily but at least will provide you some advice on how to handle the situation. It is good that student loan borrowers repay their loans in time to avoid accumulated interests.
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