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A comment on California bans ITT tech from accepting new students. Parent comment

Re:California bans ITT tech from accepting new students by brianwawok on Tuesday August 30, 2016 @08:02AM (#12389223)
Technically illegal to use school loans for things like cars or houses.
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Re:California bans ITT tech from accepting new students by ensignavenger on Tuesday August 30, 2016 @09:55AM (#12390109)
From the way I understand it, you can use student loans for any expense related to going to school, including living expenses.
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Re:California bans ITT tech from accepting new students by brianwawok on Tuesday August 30, 2016 @11:35AM (#12391065)
https://www.edvisors.com/ask/faq/use-stafford-for/

Highlights include

> Transportation (cost of travel to/from school, but not for purchase of a vehicle)

> Room and board costs can include one of four allowances, depending on where you live:

> On-campus in housing that is owned or operated by the college > At home with parents (only applies to students without dependents) > In housing on a military base or for which a basic housing allowance (BAH) is provided (allowance restricted to board; room is excluded because it is already paid for) > Off-campus

No "Durable" goods like houses or cars may be bought with student loan money in the US.

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Re:California bans ITT tech from accepting new students by ensignavenger on Tuesday August 30, 2016 @12:33PM (#12391582)
That is very interesting, in many years of dealing with student loans for myself and my wife, I have never heard sucha thing! For example, the Department of Education publications usually say somthing like:

"You may use the money you receive only to pay for education expenses at the school that awarded your loan. Education expenses include such school charges as tuition, room and board, fees, books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer"

(see https://studentaid.ed.gov/sa/sites/default/files/your-federa...)

It would be interesting to find an official statement on this... I couldn't find anything on the Dept. of Ed website and my search for the actual laws didn't turn up anything...

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Re:California bans ITT tech from accepting new students by brianwawok on Tuesday August 30, 2016 @01:08PM (#12391891)
Transportation means buss fairs not cars.

I was given paperwork when I got my undergrad student loans, and it was very clearly spelled out.

If the loans are private, I am not 100% if all of the same rules apply.

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Re:California bans ITT tech from accepting new students by ensignavenger on Tuesday August 30, 2016 @01:49PM (#12392239)
Not everyone lives in areas served by a bus system... none of the paperwork I have ever seen has spelled out any of this like that... it may depend on the school you are attending. I don't know, I haven't found the law or any official statement by the Dept of Ed. on it.
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Re:California bans ITT tech from accepting new students by brianwawok on Tuesday August 30, 2016 @03:39PM (#12393212)
> Not everyone lives in areas served by a bus system..

Totally not related to the discussion. The rule does not say "If you live in a place served by busses, you cannot buy a car with student loan money"

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Re:California bans ITT tech from accepting new students by ensignavenger on Tuesday August 30, 2016 @03:58PM (#12393359)
My point is I'm not sure it is actually a rule- I can't find anything official that says that it is a rule. If it is a rule, it is a stupid one- but that is indeed a different discussion.
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Re:California bans ITT tech from accepting new students by brianwawok on Tuesday August 30, 2016 @06:30PM (#12394490)
I agree with the rule. It's meant to discourage people from buying massive expenses with a loan that cant be discharged with bankruptcy.
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