Question about student loans?

Ok I am applying for student loans and found a great place. I know when you use your student loan you are paying for school related issues, books, computer, tuition and etc... I told my best friend about the loans I was getting and she said that financial aid paid everything for her and she applied for student loans also and used them for shopping, paying off her bills and etc. Isn't this wrong? Don't they want receipts and stuff to show what you spent the money on? Can't she get in trouble for paying off her credit card bills and other bills with a student loan? Thanks for your help

Question about student loans?
Nope, no receipts necessary. She just needs to remember that whatever loans she gets, she will have to pay back, with interest.
Reply:Tell your friend it's better to live like a student while you are a student rather than having to live like a student after she graduates due to high loan payments.
Reply:Student loans are supposed to be used for your school related expenses. However it is a loan that must be paid back and therefore you do not need to provide receipts of any kind. Be wise about student loans. While your friend may splurge her loan money on unnecessary items the truth is your first job out of college will not come with a lucrative six figure income. Student loans will need to start getting paid six months after graduation. Regardless of if you have the means to pay them back or not. Don't make the mistake she may be making. Instead borrow as little as possible and budget your money well. You will have less to pay back once you graduate.
Reply:Once you receive your student loan check, your first priority is to pay your tuition, books,dorm fees and any other expenses needed for college. The money that is left over is call a refund. Your refund can be used for whatever. Also, student loans carry a low interest rate. If you friend use the money to pay off her high rate interest credit cards, I would say that was smart move. But you also should remember that student loans are not grants, all monies borrowed must be paid back with interest. Student loans companies do not ask for receipts. But I encourged you to only borrow what you can afford.