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After the check is sent to the school, any money left over is refunded directly to you. My school, for example, sends an authorization form to me that gives them permission to use the funds for my tuition first. However, after tuition is deducted they will cut a check for the left over amount and mail it to me.

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Q: How do you use money from a student loan for off-campus housing if the checks are sent directly to the school?
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