Written by: Lexus (she/her)
2 min read | Published: February 13, 2025
Have you ever received a student loan refund from your college or university and wondered what to do with it? If so, you are not alone! Read on to learn more about what a student loan refund is and how to use your student loan refund responsibly.
As you begin gathering the amounts needed for your educational expenses, you may notice that most of the numbers you see are estimates. To make sure all your costs will be covered, the student loan amount provided often exceeds the amount owed. The funds left over are paid back to you in a check or as a direct deposit into your credit union or bank account. This is what’s known as your student loan refund, which can be confusing because it is technically loaned funds that need to be repaid, and not free money issued to you.
Now that you’ve received a student loan refund, what should you do next? Let’s review a few options that might work for you.
Ultimately, it’s good to have a plan when receiving a refund of any kind. If you have no need for cash, return your student loan refund. In the long run, it will be beneficial to give it back versus having to pay it back with interest. But, if you’re in a position where the funds could help you, be sure to make responsible choices about what you use it for.
https://scholarships360.org/student-loans/what-to-do-with-a-student-loan-refund-check/
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