10 Types of Expenses You Can Cover with a Student Loan

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Student loans help cover college costs, including tuition, room and board, books, supplies, transportation, and other related costs.

However, student loans are not just limited to educational expenses; they can also be used to pay off credit card debt or fund savings and retirement accounts. Here are 10 types of expenses you can pay with a student loan.

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Expenses You Can Cover with a Student Loan

Expenses You Can Cover with a Student Loan

1) Mortgage/Rent

If you have student loans, you might wonder if they can help pay your mortgage or rent. Well, the answer is yes! You can use student loans to pay for expenses like your mortgage, rent, and any other bills that must be paid in full every month.

It is important to note that this isn’t advisable as it will take longer to pay off your debt if you’re using it this way.

2) Auto Loans

If you want to consolidate your debt, an auto loan may be the right option. You can reduce your credit card and student loan debt into one monthly payment with an auto loan.

For example, if you owe $6,000 in student loans and have $3,000 on your credit card, getting an auto loan with $9,000 total to pay off both debts while saving the money that would typically go towards paying down the credit card.

3) Major Home Repairs

Major home repairs can be expensive, but fortunately, there are loan options to help. A Home Equity Line of Credit (HELOC) is one example, and it lets you borrow up to 80% of the equity in your home for repairs or renovations.

Your monthly payment will be determined by the amount you borrow, the interest rate on your mortgage, and the time before you need to repay it. Moreover, many HELOCs provide interest-only payments for up to 10 years!

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4) Utilities (Landline, Internet, TV)

A utility provider is essential for many people, but knowing how to keep up when your funds are low can be hard.

A student loan can be helpful, as you can use the money towards your utility bills. The best part? Your monthly payment will be lower since you’ll have more money each month! One less worry on your plate and one less bill to pay.

Heating/Cooling: Keeping warm during these chilly winter months is a priority. However, it’s not always easy to determine how you will afford heating, fuel, or electricity this season.

One solution? A student loan could help if your expenses outweigh your work earnings.

5) Groceries

It is possible to use your student loan to cover groceries. Simply purchase the necessary items and submit your receipts as proof that you used the funds for groceries.

However, it is essential to remember that those funds will not be available for other expenses, such as rent or utilities if you do this.

6) Cell Phone Service

Your student loan might be the answer if you’re looking for an easy way to handle some monthly expenses. Cell phone service is one of the most expensive bills you will have as a college student, costing upwards of $100 per month.

If you have enough money on your credit card, then it may be worth exploring other options, but if not, then it’s worth looking into taking out a small loan to cover your cell phone bill.

Related Also: How to Protect Your Assets from Student Loans

7) Healthcare Costs

Healthcare costs are one of the most expensive ones you’ll face. Knowing that you can use your student loan for health care costs is essential.

This is possible because the federal government doesn’t want people burdened by unaffordable medical bills, so they provide loans to cover these expenses.

Some students also opt to take out private loans since they have more flexible terms and rates than federal loans.

Regardless of your choice, make sure this decision is well-informed and carefully considered before signing any dotted line.

This expense should not be taken lightly; once it’s gone, there’s no getting it back!

8) Car Insurance

To get your car insured, you must present the company with your driver’s license and proof of insurance. Most companies will have you sign an application so they can get an idea of what kind of driving record you have.

You’ll also need to answer some basic questions about yourself and agree to their terms and conditions before they quote you. Remember that the cost varies depending on where you live and your car’s age.

9) Parking Fees (if you drive for Lyft or Uber)

Parking fees are one expense that you can cover with your student loan. As long as you can pay through the app and not just cash out (which only happens at the end of your shift), you can use your student loan funds to fill up on gas or pay for parking.

If you’re not working but still need to make an errand trip in town, paying for parking is a no-brainer.

Bonus, Paying for Public Transportation:

Public transportation is another expense students can easily pay with their student loan money if they’ve got it available in their account and don’t want to put themselves in credit card debt by charging for every ride taken during the semester.

Read More: Student Loans You Can Get Without Your Parents Help

10) School Supplies

School supplies can be an overwhelming expense for parents and students, but luckily notebooks, pens, pencils, binders, calculators, and paper – all these things can add up quickly.

But with the help of a few bucks from your student loan, you can make sure you have all you need to be comfortable in school.


In this post, we have explained the expenses you can cover with a student loan.

Student loans help cover college costs, including tuition, room and board, books, supplies, transportation, and other related expenses.

However, student loans are not just limited to educational expenses; they can also be used to pay off credit card debt or fund savings and retirement accounts.


What expenses should I Cover with Student Loans?

The federal government delivers the money to your institution directly if you decide to take out some or all of the student loans that are offered to you to pay for your tuition, fees, room and board, and possibly other educational expenses.

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