Hypothetical student loan hard money loan?

[Elvis Vasquez]

What safe-guards are in place to prevent someone from using student loans to invest in real-estate?

I've heard rumors from multiple investors that people have used their loans to place down-payments/rehabs/HMLs on houses...... however I don't really see this being possible due to the funds being directly sent to your school of choice (unless of course there is a private lender that deposits money directly into your bank account).