<p>If I apply for a private loan, does the lender send the money directly to me or the college I attend? What about federal-funded loans such as Perkins and federal direct subsidized?</p>
<p>It depends on the type of private loan you are taking out. Perkins and Subsidized loans are always sent directly to the school.</p>
<p>A private load is sent to you or the school, it depends on the agrement with the lender. I know chase sends it to student, while I know sallie mae only sends to school.</p>
<p>For the loans send to student, can the student use it however he or she chooses to? Will the loan be in cash or a check, and if it is a check, can the check be sent to the school directly or does it have to be first deposited in the student's banking account and then taken out later?</p>
<p>Either way the money is yours. Usually a school will take the loan if sent diretly to them and apply it to tuition. If tuition is already all paid, a load can still be taken and the amount will be credited to you, on the condition that all yours tuition and fee's are paid.</p>
<p>I know kids who have bought cars and such.</p>
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Will the loan be in cash or a check, and if it is a check,
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<p>The people who deal in cash loans generally have MUCH HIGHER interest rates. And serious penalties for failing to make a payment. ;)</p>