Ever been confused how people could afford a place and go to college? Most people are getting at least some help from their parents for food, health insurance, etc. Just pick a couple major expenses and their parents totally have their back, but even if your dad pays your car insurance that’s not going to get you a place to live. Let’s be honest, college-aged people don’t always have their heads on straight. This method can really screw you if you’re not careful.

If you didn’t know better what they’re doing sounds like a loop hole. By taking out the maximum amount they’re allowed in federally subsidized loans each semester much is left over, and they use that borrowed money as supplemental income to make the math work. However, let’s get a few things straight because this isn’t for everyone. For people who don’t have government-backed student loans this isn’t for you, at all. Doing this will put you down shit creek without a paddle, and could very easily make your college degree really not worth it. Plus, let’s remember these loan can never forgiven; the debt is with you for life.

Sounds pretty bad, right? Even people who’re in doctorate programs are totally boned if they live exclusively off student loans. Taking out more than you need is something you should really only do if you’re mature enough to not be greedy about it. This isn’t for buying a video game, going on dates, or any other frivolous expense. Think of borrowing more than you need as frosting rather than the whole cake. Anybody who lives lavishly on the bank or government’s dime is screwed. Just remember, those websites that have salary information are totally unregulated.

However, there’s a scenario where I could actually see this being a viable option. So long as you’ve got work, are going for degree that pays well at the entry-level, got at least two roommates, and are accustomed to living on the cheap it maybe something you want to consider. Since it will allow you more security with minimal long-term risk. Generally speaking if you’ve got to borrow anywhere near the maximum to pull it off it’s a bad idea.