Loan money goes directly from the loan company to the school to pay tuition, fee’s, books, on-campus housing and food and nothing else. Student does not get their hands on any cash from the loan, period. No apartment, groceries, transportation, car, gas, Spring Break, nada. That should take care of the problem. That was how it was done in the old days with student grants and loans. For play money, we used to work during summer and holidays, and part-time during the school year once we got the hang of studying.
I started college in 1962 and graduated in 1967. I paid for my first three month quarter w/ cash out of pocket and borrowed the rest all the way through. The financial aid office cut me a check for every loan I took out and I had to manage the money myself. The loans were a combination of private foundations, State and Federal backed paper. I remember we couldn't put any Federal money into an interesting bearing account, checking accounts were OK though.
There was one guy (Goldner) who took out a loan package at the close of a quarter and during the break bought a car. When we started the next quarter, he hit up the Financial aid office for more money for school expenses, and they granted him another loan. Only Goldner could get away with a stunt like that.
There was no "on campus" housing until my last quarter so everybody lived in apartments off campus. We had a one week break between quarters so no "spring break" either. Since the campus was virtually "down town" most of us walked to classes or took a city bus. There was a school of Mortuary and Medical Science up the block from our campus, they had a nice commissary and we used to catch a burger at the mortuary for lunch.
Regards,
GtG