Don’t Use Student Loans To Pay Bills! Here’s Why
Are you thinking about using your student loans to pay bills? Then this post may be very useful to you!
Student loans can unlock countless opportunities and potential by providing students with the money they need to pay educational expenses. Unfortunately, many students end up using their student loans on things outside of education, such as paying expenses.
Despite how common it is for students to use student loans for other purchases, it is incredibly dangerous to pay bills or other charges using your student loans. Using your student loans for expenses not related to education can leave you in a heap of trouble.
Learn why you should not use student loans to pay unrelated expenses below. This article fully explains the dangers of misusing student loans and provides alternatives, such as online title loans for paying rent and utilities instead.
Here’s Why It’s Better To Avoid Using Student Loans To Your Pay Bills
1. Using Student Loans To Pay Bills Is Considered Fraud
Whether or not you can spend student loan money to pay bills depends on where you received lending.
If your student loan is from the federal government, there are incredibly strict rules about what you spend your student loans on. In contrast, certain private lenders may allow you to spend the loans for emergency bills and other expenses, but there will often be higher interest rates in exchange.
If you get your student loan from a lender who outright forbids the money being used on bills and other similar expenses, you are committing fraud. Especially when you get loans from the federal government, you can get reported for fraud to the Department of Education. If your loan comes from a private lender, you will need to read the fine print about how you can use these loans.
Most student loans do not allow you to spend the loan money to pay bills and other similar expenses. Unless you know outright from the fine print that you can spend student loans for emergency bills, we recommend avoiding this practice. Even if you can use student loan funding to pay off other balances, we still discourage the practice for the reasons below.
2. Your Student Loan Misuse Could Be Reported
Student loan misuse can be a serious issue. If you get reported to the Department of Education, they hold the right to take the money back, which means you have to pay back the bill in full immediately.
In more serious cases, you can end up in jail if you commit student loan fraud. Most often, individuals who land in prison do more than use their loan money irresponsibly, though. Often, there’s some form of identity fraud as well.
3. You Risk Getting Stuck In A Debt Cycle
Even if the lender you select allows you to spend your student loans to pay bills, we still advise against the practice.
With some student loans, you can have a high-interest rate depending on the lender. Because of this fact, it’s a much wiser decision to take out different types of personal loans for bills if you need help with expenses. Simply use student loans exclusively for education expenses so you don’t have to pay more.
To make matters worse, student loans are next to impossible to get rid of. It is nearly impossible to successfully declare bankruptcy on your student loan debt. What this means for you is that your student loan debt is likely to follow you wherever you go.
So, keep the debt as low as possible so you can manage it better in the future. Using your student loans to pay your bills increases the amounts, unnecessarily.
Which Personal Loan Type Is A Better Alternative For Paying Bills?
Because there are so many downsides to using student loans for your bills, we recommend looking for other alternatives instead like personal loans. These other alternatives do not put you at risk of committing fraud, and they are often wiser options from a financial stance.
Online Title Loans
Even though it is unwise to use student loans on unrelated bills, other loan types may be an option for you and your financial situation. For example, online title loans may be able to help you pay your balances without risking fraud and long-term complications.
To be eligible for online title loans, you need a vehicle in your name, a lien-free title to that vehicle, and a driver’s license or a state-issued ID. If you meet these requirements, you can get approved for the cash you need in as little as 30 minutes.
You can use At Home Title Loans to find a lender near you that offers title loans of up to $15,000. The process is easy and all you need to do to get started is complete the online inquiry form to be connected with a lender that fits your needs. Next, gather the simple requirements listed above, and prepare to meet with a loan representative at your desired location. At that meeting, the loan rep will verify your documents and do a quick vehicle inspection to determine if you qualify and how much you qualify for. Last, but not least, you’ll get the money you need that day or by the next business day!
If you are worried about losing access to your car, truck, or van, don’t be! Online title loans are secured by your vehicle title, not the vehicle itself. You can continue to drive your vehicle as usual while making payments on the loan. When the loan payments are paid in full, your title will be returned.
Get Your Online Title Loans Today!
If you need help making payments, save your student loans for education expenses and find other personal loans for bills instead. Online title loans are one option to consider if you’re in an urgent situation and need help fast.
To find out more, use the secure inquiry form online at At Home Title Loans to be connected to a reputable lender who will walk you through the rest of the process. Fill out the form today to get started.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
