Student loan is granted to students so that they can pay off their college fees, accommodation expenses etc. but the bitter reality is that a great number of students actually misuse this amount by spending on vacations, partying or by buying luxury items which sooner or later backfire on them badly, hence critically damaging their financial condition. Such students came to realize about the loss when they actually need this money to pay for their real expenses like food, teaching aids, accommodation expense etc. hence allowing their financial condition to become way much critical and they usually end up going with additional loans or by borrowing money from one place or another, therefore it is very important that the government or financial institution should keep a proper check and balance that were the students are using the loan amount.
Keeping a proper check and balance of the loan amount is practically impossible, as each and every student has different needs and they spend the loan amount as per their needs and requirements. However at this point universities and colleges should play their role by telling the students that how they should use their student loan amount, and in what different kinds of trouble they might fall in if they misuse this amount. In short proper guidance is needed in this regard, as most of the students are short term planners who are not willing to foresee the future. Hence this is the only way to avoid the misuse of the student loan.