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I already received the first refund check. Basically, it goes into my student account, which is paid in full, so they send the remainder back to me through check or direct deposit.

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In your promissory note, you agree to only use the money for "qualified" educational expenses (books, rent, etc.). They really have no way of checking what you use the money for. But, if they find out one day ... you would be in violation of the contract. In which case, the lender may want to end the agreement, take legal action against you (assuming they can prove you violated the contract), and take their money back.

Right, so the way I see it, the money from the loans goes into my account for educational expenses. The money from my funding (grants/advisor/etc) that is used to pay for my tuition/fees is returned to me. Once it's in my account and it's refunded, the lending institution would have no way of proving if it was their money or another money source that was refunded to the student. All of the money is technically still being used for "qualified" educational expenses, right?

I guess if they did find out one day I'd still be paying the money back, and by that time I'd be hopefully successful in this so I wouldn't mind returning it.

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