<p>Situation: My friend didn't apply for FAFSA for the 2008-2009 year for whatever reason. She has no aid, but she's trying really hard to find private scholarships.</p>
<p>Let's say she takes a normal bank loan for however much amount of money (~15-20k), can she use the scholarships she is awarded in the future to pay off the bank loan, even if the specific reason (which is for college tuition) of the loan is not stated in document?</p>
<p>If not, then can she use the scholarship money to pay off the loan IF the documents DO state that the money was transferred/used for the college she is attending?</p>
<p>By "normal bank loan", I mean a loan you request from the bank and not a loan from the educational departments of the State and/or the Federal government.</p>
<p>Thank you!</p>
<p>If the bank loan is not tied to the school in some way you can. Some loans are limited to going directly to the school and are so stipulated. Most are not. The scholarship will be more problematic as many scholarships go directly to the school. In that case, she will have to talk to the school and request that a refund of her payment be made to her so that she can repay the bank loan. Many scholarships are set up so the money has to go to the school. Kids are surprised to discover this.</p>
<p>If the scholarship money goes directly to her, can she use it for the loans. I thought you still had to let colleges know, and if that was the case, they may take the money out of her aid instead of letting her use it for loans.</p>
<p>Why not complete the FAFSA now, I think she can still get student loans, even if the grant aid is gone.</p>
<p>It is never too late to apply for FAFSA.</p>
<p>
No, unless the scholarship specifically states so. She would likely be violating the terms of the scholarship. It is for future expenses only, not past ones.</p>