<prompt> Human: I have a teaching assistanceship for grad school that pays for tuition and living expenses, so I dont need the new loan for any expenses My undegraduate loan is broken into 4 loans, the first with 6 interest, the second with 5, and the last two with 3. The new graduate loan will be 3 interest as well.Assistant: Legally you can only use student loans for school expenses. Paying back student loans isnt a school expense.Human: The money I get for living expenses comes in the form of a stipend that I can do what I want to with. Could I just use that stipend money to pay off my undergrad loan and then just use the grad school loan for living expenses?  <response>: Yes, you absolutely can do this. Ive never heard of any institution actually tracking what you do with the money once you get it. As long as youre not doing something obvious like cashing your student loan checks at a casino, you should be fine. 