Financial Aid

What are food stamps?

Food stamps allow people to buy food in groceries and stores. It is like using a credit card or a debit card. It is a federal programme which works throughout the United States.

Can a college student be eligible for food stamps?

Yes, students between the ages of 18 to 49 are eligible to receive food stamps and you have to prove that you are:

• Having a 20 hours week with the least minimum wage
• Working under a state or federally funded study-work program for the period of the school year
• Provide evidence to show that you are disabled
• Taking care of people in your household who are under the age of 6 years or unable to take care of themselves
• Taking care of children between the ages of 6 to 11 years, where sufficient child welfare is not available
• A single parent and a full-time student taking care of a child under the age of 12
• Receiving benefits pertaining to Family Assistance (FA)
• Attending school under the act called Jobs Training Partnership Act (JTPA).

Will financial aid be considered income for food stamps?

Any federal financial aid received by a student will not be counted as income.

Will Food Stamps Affect My Financial Aid?

Food stamps do not affect your eligibility for financial aid and, also getting financial aid will not affect your eligibility for food stamps. In fact, food stamps help one for becoming eligible for federal grants. On the FAFSA, there is a spot that will enquire if you are receiving any food stamps. When you check the box for food stamps, you pretty much get done with most of your FAFSA questions.

Is Private Loan Considered Income For Food Stamps?

Personal loans not considered as income. They are not even considered as income when you file your FAFSA or your taxes. Therefore, private loans will not be considered as income when you apply for food stamps. You do not even need to report the same to your financial aid office as it is not income.

Does Going To School Affect Food Stamps?

No, going to school will not affect eligibility for food stamps. As a matter of fact, financial aid is intended to facilitate the covering of student expenditures such as travel and living costs. Therefore, going to school should not be related to food stamp eligibility.

For more details on food stamps, visit – http://ssa.gov/pubs/10101.html#food

Typically your college hands over a check for any leftover funds from your student loan or federal aid or grants once all the educational expenses from the college or university has been met. Now the funds handed over to the student with the following expectations. Since the refund is from your government or private student loan, the expectation is that you will use the remainder of the loan i.e your refund money on things that support your education. These could be school supplies, boarding and even commute. Yes, this does mean that you can put your refund money to purchase a car to help in your commute to school.

It is important that you maintain strict records on how you spent your loan refund money. This will come in handy if and when you have to show for whatever reason where the balance of your student loan funds went. What this means is that you cannot use your left over funds for entertainment and other non educational reasons. Spend your left over bonanza wisely.

This is a very common question and below are some of the related queries we get on this subject. As always any personal information is removed.

• “How can I spend my refund loan amount?”
• “I might be getting back close to $2000, I would love to use that money to pay my rent and other bills that have piled up. Is this allowed?”
• “What should I spend my loan refund money on? I already have all my books & other school supplies. I would like to buy a used car for transportation to & from school. Can I do this? I don’t think I have to explain to the Financial Aid office how I spent the money. What else should I do with any leftover money?”

One of the biggest issues that students face when entering college even with financial grants or aid is apart from room and board is transportation. If you have to commute fairly long distances then this problem is even more aggravated. Many students in such situations start to wonder if they can use their student loan funds towards buying a car. Now the short answer to the questions is yes, you can buy a car with your student loan or financial aid but there are a few conditions that you have to first meet.

Remember the main reason the government or a private lender gives you money in the form of a student loan or grant is for your educational needs. The expectation is that you will be using these funds to further your education. Therefore most of your loan money must be used for your tuition and other college related expenses. If you have any left over money from your grant or loan then you have the option to consider how to best use this money.

Again, let me be clear, you cannot use these funds in any other manner but for your education. Now a car can be considered a legitimate expense if it is for the purpose of commuting to your school. Buying a car, buying a laptop and other school related supplies can be valid reasons for your left over funds. The crucial point to note here is “left over funds from your student loan“. The main usage of your student loan must be for your tuition. Infact in most cases your federal loan or grant money is handed over to your college. The college or university once they deduct all your expenses will hand over any left over or remaining funds from your student loan back to you and this again as explained above is expected to be used on expenses that are directly related and for furthering your education.

I hope this answers your question regarding using your student loan money to buy a car. We’ve had many questions around this subject and infact have another article that talks about the same question. As usual I’m listing a few questions we get around this subject.

• “Can I buy a cheap and used car using my student loans“
• “Can I use my pell grant to buy a car”
• “I will be starting college this fall. I really need a car. There are ways for me to get to school other than my own car but they are not practical on an everyday basis. My financial aid is paying for my tuition completely. I was wondering if i could use my student loan to cover the costs of getting a car”