Can I spend my financial aid refund check on anything?

This amount that you receive as a financial aid refund may be paid as a check, credited to your account or deposited into your bank account directly. You can accept the money and use it for whatever you want. This is still considered as money loaned to you and it will attract interest.

What happens if you accept financial aid but don’t use it?

Does my aid “expire” if I don’t use it? Yes, aid will be canceled if a student does not enroll in classes within the term or year that aid is offered. However, aid does not expire but eligibility could change yearly based on need, if the student is eligible to receive aid the following term or year aid is awarded.

Can I use my fafsa money for clothes?

Personal expenses – Funds can be used to purchase groceries, cleaning supplies, clothing and other personal items. Other Expenses – Federal aid can also help with other expenses, such as health care, accommodations for students with disabilities, or care for your dependents.

What happens if you misuse financial aid?

If a college’s financial aid office finds out a student has used loans inappropriately, the school can report it to the Department of Education via a hotline and retroactively take the misused money back. This would make the student liable to the school for those funds.

Can I spend my college refund check?

If you receive a refund from unused federal student loan money, you’re free to keep it, but remember you’re still borrowing that money. But if you need to keep it, make sure you spend the money wisely.

Does financial aid refund count as income?

You do not need to list your student loan refund anywhere on your tax return. Because the money is borrowed, not earned, it is not income.

Can you keep extra FAFSA money?

If you have money left over from your Pell Grant, you can ask the school to hold the funds for you, or you can receive the remaining amount as a refund. Pell Grants go toward education expenses, except student loan expenses.

Can I use my FAFSA money for gas?

Your financial aid package may provide a travel allowance that will help you travel to and from school. You can use your financial aid money to pay for gas to get to and from school or airplane tickets if you live too far to drive. However, you cannot use the money to purchase a vehicle for transportation.

Can you go to jail for misusing student loans?

Penalties For Misuse Loan fraud can lead to fines or imprisonment, as well as being barred from receiving loans in the future.

What can I do with my FAFSA refund?

Unsubsidized student loans If you receive a refund from unused federal student loan money, you’re free to keep it, but remember you’re still borrowing that money. You will need to pay any federal loan money refunded to you, with interest, starting six to nine months after you graduate.