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Personal Loan: How to define loan purpose
I would imagine that it goes beyond purpose and also addresses the demographic as a poor credit risk. Those seeking a post secondary education are a poor credit risk.  They are at the beginning of their careers so tend to have low income, a short credit history, and a very short time of managing money on their own.  Also many don't know how to work.  This later fact, to me, is a great predictor of financial success. Reading into the financial data surrounding student loans, it pretty easy to see that this demographic makes poor money decisions.  I live near a state university.  A large percentage of students drive late model luxury cars, frequent expensive bars and restaurants, and wear pretty nice clothes.  They also graduate with, on average 60K in student loans.  Keep in mind a 4 year degree could be had for about 30K and could be paid for working a part time job.  And that, to me, is the wisdom in bank's decision.  Sure they will loan you all the money you want with a government guarantee.  However, once that disappears they will not you money for unnecessary purposes.