How Do You Use Financial Aid to Pay Bills?


Quick Answer

Student financial aid goes to schools, which use the funds to pay educational expenses then pass the balance on to students to pay miscellaneous bills, reports Federal Student Aid. Low-income people receive aid such as Supplemental Security Income directly and use it to pay bills, states the Social Security Administration.

Continue Reading
Related Videos

Full Answer

After a student submits a Free Application for Federal Student Aid, or FAFSA, and the school the student is attending sends a financial aid award, the student accepts all or part of the award, according to Federal Student Aid. The school receives the loans or grants covering a full academic year and issues the money in disbursements at least once every term. The school usually first applies the funds to educational expenses such as tuition, fees, and room and board, and then pays the balance to the student by cash, check or direct deposit. Student financial aid in the form of work-study income goes directly to the student in the form of salary payments, which the student then uses to pay bills.

Supplementary Security Income is financial aid for low-income blind, disabled and elderly people to help them pay their bills for basic necessities such as shelter, food and clothing, states the Social Security Administration. Those eligible for Supplementary Security Income receive monthly payments on the first of each month, which they then apply to whatever bills they need to pay.

Learn more about Credit & Lending

Related Questions