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What does retained Federal Student Aid guidance say about Direct Loan funds and education expenses?

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Angelo State University

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Towson University

Federal Student Aid's Direct Loan guidance says the school first applies loan funds to the school account for tuition, fees, room and board and other school charges, then returns any remainder to the student. It also states that all loan funds must be used for education expenses. For a Towson student, confirm the actual aid offer, school-account application and permitted educational expenses with the responsible financial-aid office before spending a refund. This process is not a promise of a refund amount or an authorization to use student-loan proceeds for a parent's down payment, property purchase or unrestricted noneducation spending. No particular student's aid eligibility or disbursement is verified.

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