Yes, in two ways:

- By buying on a subsidized contract, you've effectively used a loan for an iPhone. It's not different just because the phone company issued the loan.

- By using a loan for something else (e.g. tuition, automotive, housing), and then buying an iPhone instead of paying down the loan

I wouldn't consider buying an iPhone on a subsidized contract a loan because you are just commiting to have service for a set period of time. You would be paying the same amount for service regardless if you were under contract or not.

> You would be paying the same amount for service regardless if you were under contract or not.

No, it's lower if you bring your own device with most carriers. http://www.att.com/shop/wireless/byop.html

I've known people who've subsidized their phones and unnecessary possessions with college loans, yes.