Quote Quoting Sonatina
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The loan in question was taken under the presumption it was to be used for tutition. That didn't happen.
The question of whether you misuse the funds you borrow is separate and apart from whether the lender followed proper practices. For example, if you obtain a qualified student loan but then use the proceeds to buy drugs, nobody is going to dispute that you did not use the loaned funds as intended, but that's all on you.