<prompt> Human: They want to use the pre-approved loan 5000 through FAFSA and his school to buy a 100,000 USD 0.3 acre property with basically 2 shacks on it in Mexico with other family members to rent it out and use it as a vacation home. Setting aside that thats a terrible deal and they have no idea what it takes to rent out a house, what can happen to him if they do this? Is it even legal to use the money for non college purposes? He has a job and took out small loans himself and he affords college on his own BTW. Just dont want him to get screwed over, his family is terrible with money.Thanks for the help.  <response>: Since its a PLUS loan its 100 the parents loan and cannot be transferred to the student and still be considered a PP loan.School loans are for school related expenses only. The lender could call the debt owed immediately. 