You received a Student Loan Refund Check? Lucky you! It's amazing how much money you can get back in a refund check. You may want to spend your refund check, but you should also consider some other important factors. Read on to discover what students can do with their refund check!
What is an e-refund check?
The amount of financial aid or loans that students receive is determined by the cost of attendance at their school. The cost-of-attendance is an amount estimated to include tuition, fees room and board and textbooks.
In many cases, it's an estimate. Therefore, you may find that the borrowed sum is higher than what was actually paid. If this occurs, the school will refund you for the difference. Refunds are issued in check form, by direct deposit, and as credit to your account. Refunds will be issued each semester, typically after the school's drop/add period.
The money you receive in a refund check is not "free". All money spent by students will be subject to interest. Here are a few tips on how to make the most of your refund!
Spend on essentials
It is thrilling to get thousands of bucks. Some students may spend their refunds on clothes, electronics, or vacations. This is not wise and can cause bad habits in terms of money management. The refund should be used to pay for college or other expenses that will improve the student's future. These costs include:
- Textbooks, Notebooks and Other Supplies
- Transport or parking passes
- Rent or grocery bills are examples of living expenses.
- New laptop
Refund checks can also be used to invest in college funds for graduate studies or pay off debts.
Your school provided you with financial aid because it thought you would need it. If you need to, don't worry about it. Be smart, because you will need to pay back the money.
Keep your refunds for emergencies
College life is unpredictable. You can also save your student loan refund checks for emergencies. Accept the refund and deposit it into your bank account to cover any unexpected costs.
It's a good idea to save your refund in case of an emergency.
Return it for student loan repayment
Students do NOT HAVE TO ACCEPT OR USE THEIR REFUND CHECK. You can return the money if you do not need it. You can pay off your loan early by returning a refund. You can accept some of the money and return others.
What you need to know
- The student loan repayment check is not subject to any rules. Budget wisely and keep in mind that you will need to pay back any money spent.
- To reduce the amount you owe, you can either use the money for your next semester of tuition or to cover educational costs.
- It's not necessary to spend the entire amount. You can split it however you like.
- Contact the financial aid department of your school if you still have questions.