Can a Stafford Loan be used towards buying a musical instrument?
I see a couple of issues, and a couple of answers. Stafford loans are paid directly to the institution, and dispersed in two equal installments, one each semester and are credited against the outstanding balance. The only way you get cash in hand is if there is a surplus of payments, resulting in a credit balance on the account. The money is then returned to the student in a check. Thus, using Stafford loan proceeds to buy in an instrument will at the very least present a cash flow issue. I can’t recall the max Stafford loan amounts, as they’ve recently been increased, but I think around $4k is the freshman loan limit. Depending on the type and quality of an instrument, 4k can be a drop in the bucket. Now, if you are applying as a music student in a music major, some schools may consider that an instrument upgrade is required to succeed or at least compete on an equal footing with the majority of students in the program. They may well increase your COA estimate to allow the inclusion o
