How do schools keep track of direct loans?
I am preparing to take a direct loan subsidies for college. I read that I can use the money for school expenses such as room and board. If I spend my money now for books and parking passes for I can go to class (both of which are covered), I "pay me" after getting the loan? Moreover, how they keep track of what I spend money? I feel I'll be observed for every little thing I spend money.
No, they do not keep trace of it at all. And even if they did, you can pretty much get away with something to be "school related" costs. Buying a computer? Well, you write articles on your laptop, right? Going on spring break and need money for flight? Well, it's healthy for students to participate in recreational activities, anti-stress. Need gas money? You need to go to the library, sometimes, no? The refund will also be quite acceptable. Basically they cover their butts of their own. They put this clause in terms of reassuring the taxpayers. Taxpayers want to make sure their taxes are being used for educational expenses only, so that the federal government said, "Uh, OK, we'll write in the contract indicates students, and everyone feels better." In rare cases, it is necessary to recover money. An example is if you're openly lied to the school: that you ask for additional loan money because you go abroad. It's a learning experience, then it is allowed. The office of the school's financial aid some forms sent to your host school and host school tells them they have no history of you attended. Thus, the school did a little digging and find out that you are enrolled in two classes at local community college and you live with your parents, and using money from the loan $ 20,000 more than the capital to build a marijuana grow house. This in unacceptable use of loan financing students. Now they can point to the clause in the contract you signed, and give you back $ 20,000. Whatever is reasonable is acceptable. No that they will never do any research – because of privacy laws, they really can not. They can not ask your bank or history credit card. Even if they could, it does not really matter for them (and they have no money to pay employees to consider this kind of thing).