Just because your parents or scholarships are paying for college doesn't mean you don't need your student loans.

If you plan to survive on credit cards or bank debt as you work toward a degree, consider taking out a student loan instead. It could be a more affordable way to support yourself and a better way to build your credit.

No matter what your friends tell you, student loan money isn't free cash from the gods of academia. It's a loan you can get even with bad credit, but you'll have to pay the money back eventually, probably with interest.

As an undergraduate, you can borrow up to a total of $46,000 in Stafford loans, the most popular of the several types available. As a graduate student, you can borrow up to $138,500.

The student loan police aren't going to come after you for using the money on things other than textbooks and tuition. One friend used her loan check on a designer skirt. Another used hers for a road trip through the Grand Canyon. Hey, the cost of college technically includes transportation, living and personal expenses.

I guess the Mustangs, designer clothes and road trips are covered.

One friend, I'll call him Sebastian, was a bit more resourceful. He used his student loan money to pay off $12,000 in credit card bills. “It was cheaper that way,” he said.

If, like Sebastian, you've got credit card debt with a 22.8 percent interest rate, pay it off with student loan money borrowed at a fraction of the cost.

The game of shuffle could be worth the savings, especially if you qualify for subsidized loans whose interest tab is picked up by the government. Even if you don't, paying less for the money you owe will save you money.

And unlike your credit cards, you can postpone payments on your student loans until after graduation without hurting your credit. You'll also have more options should you find yourself having problems making your monthly payments.

Plus, a large student loan likely won't prevent you from qualifying for credit cards, car loans or home mortgages. With student loans, potential lenders focus more on payment history and amounts than total balances.

If you're a renter who got a new car as a graduation gift and doesn't have any credit card debt, a student loan may be the only thing on your credit report that shows you can pay off a debt you've racked up.

There's an urban legend that some resourceful students have found ways to make money by taking out student loans. I've never met any of these people, but here's how the theory goes: Borrow low-interest student loan money and invest in something that will not only cover interest payments but also put a few extra dollars in your pocket.

If you're going to borrow, you may as well borrow smart. If only I would've borrowed and invested smart enough to retire straight out of college.