College students use student loan money for more than just school

Education

EL PASO, Texas (KTSM) – During summer many college students are having to decide how they will spend their student loan money.

In a study done by Student Loan Hero only 10% of students use their loans solely on tuition costs.

That study shows the top things students spend their loan money on the most during summer includes food, bills and housing cost, with 20 percent saying they use that money to travel. El Paso Financial Advisor Bobby Diaz says that might not be the best idea.

“Money, in general, is important to spend wisely despite where it comes from. This money shows up fast and can go fast,” said Diaz.

According to Diaz the best way student loan money can be used includes:

  • Tuition
  • School related expenses
  • Saving for the unexpected

“I mean at that point it becomes your money basically you know you’re going to pay it back, that’s the biggest part if you want to be smart about it, I would just use that money and pay it back right away,” said UTEP Student Eric Orozco.

KTSM spoke to students and most said they have used student loans for things other than school but not large amounts.

“I do get student loans and I use it all for school because I get just enough for school and books sometimes I’ll have like $100 left over and I’ll use that for maybe food and gas,” said UTEP Student Sara Samaniego.

Financial Advisor Bobby Diaz says his advice to students is to not forget you will have to pay that money back and with interest.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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