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Student loan to care for family


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Hi all,


I have a question that essentially boils down to what student loans may be used for.


I am in the 4th year of my program, which has been and will continue to be funded through an external fellowship, so I do not need loans to cover my tuition or personal living expenses.


Recently, my mother's health has started to deteriorate, and she is not in a financial position to cover many of the expenses that are coming up as a result. When this started within the last year or so, I had hoped that I could finish school, and then help her to cover her expenses once I had a job. However, it's rapidly getting to the point where she needs money now, and not later, to get various procedures done.


Anyhow, with access to student loans, I realize I could get her that money now by taking out a loan myself and passing it on to her. I'm ok with this personally, as this is just money I would give to her later. In fact, this could be cheaper in the long run if getting care now could reduce the amount of care to come in the future.


And now the main question that I have: I've never dealt with student loans before. I have heard that loans can be used for "whatever you want", and also that they have to be used for education and personal expenses, and that audits may occur. Would caring for a sick family member qualify as a personal expense? Do audits about the use of student loans actually occur? 


I'd appreciate advice from anyone who's used loans at the graduate level, or perhaps has found themselves in a similar situation to my own.

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First of all, there is no way for anyone to know how you are using the money you receive. Unless you tell them.


That being said, are you sure you are eligible for loans?

I'm not really sure how this works with external funding.

But usually, you can only receive funding up to the amount that your uni estimates to be the yearly budget. If your funding covers that amount, it's likely that you won't be able to get loans. If your funding is less than your school-estimated budget, you can take out a loan for the difference.


For example:

School estimated yearly budget $50,000

Your funding $40,000

Eligible to take out loan for $10,000


This is, of course, assuming that your school is aware of your external funding.

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Guest Gnome Chomsky

I would give it a shot. I have scholarships, grants and a GI Bill from the military, and I'm still eligible to take out the maximum loans, both subsidized and unsubsidized. Do what you need to do. If your mom needs the money, get it and worry about paying it back later. 

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I would need to know more about the type and amount of expenses you are considering.


Is your Mom covered by any health care plans now?    Is it medicine she needs or help in her daily living activities, etc?    How old is she now?

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Does anyone know about this, it can help him or am I speaking information everyone knows about. I need some advice for myself too! 


COA lets say is 48K and that includes housing, transportation, living and tuition in one. 


what you do is subtract the COA which is 48K minus the tuition which lets say is 22K which equals 16K


Then what you do is divide by two and get the pay out reimbursed which is 8K per semester?


Does that seem right to you guys, I truly need this guys, 

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