Vacationing at a Colorado resort for a few days of relaxation or casually shopping for clothing at the expense of SIUC could place some students under investigation, Financial Aid Office officials say.

Monica Brahler, Financial Aid Office coordinator of public relations, said the FAO has witnessed a whopping increase of money borrowed by students over the last year.

During the 1996 fiscal year, 11,135 students borrowed $52,558,525. During the 1997 fiscal year, $55,412,777 was loaned to 11,398 students.

Advertisement

Brahler said the increase of money borrowed in recent years could lead to investigation into any suspicions of misused money. She is quite sure that student loans are misused, but before anyone investigation takes place, evidence is needed.

Brahler realizes there is no definite way to halt the misuse of financial aid, but said the FAO will continue to offer alternatives such as scholarships and federal work-study programs.

This could be a trend of this potential use of money inappropriately, she said. If anyone calls us with concerns about this we certainly will investigate those concerns.

A student, who fears being punished for misusing student loans and wishes to remain anonymous, borrows about $3,900 from SIUC each year to accommodate his traveling expenses during spring break among other commodities. He said he uses financial aid to support his all-around living expenses.

Besides the $350 he spent visiting Colorado, he uses the remaining $3,500 on updated photography equipment including studio lights, cameras and paper. He said it will benefit his photography career in the future.

The more money I get, the more I can spend on my own equipment, the student said. I don’t like using the school’s equipment because a lot of it’s broken down and old. I’d say I probably use 90 percent of my loans for my equipment and 10 percent for traveling and stuff.

Such activity prompts SIUC’s Financial Aid Office to look further into how students actually use the financial aid given to them. Each year FAO perpetually enforces the loan amount limits to prevent abuse by students.

Advertisement*

Annual subsidized and unsubsidzed loan limits for freshmen are $2,625, $3,500 for sophomores, $5,500 for juniors and seniors and $8,500 for graduates.

Errol Samuel, a senior in administration of justice from Chicago, said he has always appreciated his financial aid package each year, which consisted of grants and loans. However, because of a tuition increase, he needed to borrow additional money to continue living comfortably.

Despite the concerns of FAO, he uses loans for shopping and to pay his credit card bills. He said the basis for the financial aid that students receive is unfair, and should take every aspect of living expenses into consideration.

I usually don’t have to come out of my pocket for anything, Samuel said. (This year) I had to change my federal work study into a loan because tuition went up. And I got my financial aid cut a bit. They shouldn’t do that. They base it on my parent’s income, but I don’t get money from them. They should base it on my income.

Brahler said students should not casually spend financial aid on such things as shopping or traveling. The financial aid packaging is designed to supply students with necessities, not to accommodate some of their indulging lifestyles.

Our system is set up where students get what they are eligible for, Brahler said. I think the budget is very moderate. It doesn’t take into consideration the use of car phones or eating T-bone steak every night. So kids who want to live beyond their needs will not have enough money. It’s set up for basic needs.

Brahler said it would be poor judgment for students to borrow money year after year because eventually, they may actually need the loans for emergencies.

Basically, financial aid is designed to help kids with living expenses, tuition and fees, Brahler said. If the student hasn’t met the maximum amount on a loan, and they use it on something else, then when it comes time to use it, it’s not going to be there because you’ve maxed it out.

Students should not take for granted the easy access to borrow money. Brahler said students do not realize that loans are to be paid back eventually, and students will suffer major consequences if the do not repay them.

When students take out money they need to use it for what it is there for and are responsible for paying it back, Brahler said. If they don’t pay it back there are serious consequences. It goes against your credit rating.

The student who asked not to be identified said he will continue to borrow money from the University as long as it is easier than asking his parents for it. He said he has no problem with repaying the loans once he graduates.

I couldn’t tell (my parents) to buy me this $1,300 camera or these $1,100 lights, the student said. So I’m using financial aid to aid me and I intend to pay every bit of it back.

Samuel said that he understands that loans are to be repaid. As long as he repays them, he will continue to use the money to fit his needs.

I know I have to pay it back, so it’s really not a benefit, Samuel said. But right now I don’t have to worry about paying any bills.

I don’t see anything wrong with that. After my books and everything are paid for, whatever’s left over I should be able to use it the way I want to use it.