I am about to move out of town to finish up college, but I will frequently be making a 400-mile one way trip to and from my home town. My car is 11 years old and has 140,000 miles. My question is, should I take out student loans in order to use part of the $20,000 for a new car, or should I just try to make my current car work in order to avoid the debt? Thanks.
2006-07-24 10:11:22 · 9 answers · asked by dandelion86 2 in Education & Reference ➔ Financial Aid
I am living in the town the college is in. I'd be making trips to home for holidays, etc.
2006-07-24 10:16:18 · update #1
If you don't absolutely have to take a loan you shouldn't...if there is any way to keep that car working to avoid the loans I would do that.
2006-07-24 12:24:59 · answer #1 · answered by maharet 6 · 1⤊ 0⤋
Can you get around without the car? Maybe not...but I'd seriously ask myself that. Some people live in places that make cars nearly more of a headache than a convenience. Depends on where you are.
If you can't, I'd get a student loan before any other type of loan if I absolutely had to borrow. Why? They are flexible lenders (i.e. if you're unemployed, you can get a forebearance in payments...a regular lender is going to say, "so what? Gimme my money."). Student loans also have very low interest rates and good repayment options instead of just regular compounded interest + principle. Lenders consider student loans "good" debt, because they know most people have them and they don't go as hard on your credit if it's student loan debt versus six CC's.
2006-07-24 17:16:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
are you going to a small university or living in a small town...because im a college student myself and $20,000 doesnt even put a dent in what the actual cost is going to entail..especially with college expenses rising....that is unless your going to a community college and not paying rent.
Its still good you have that money saved up..it will help you a long way.......if you were to take out students loans i would suggest an UNSUBSIDIZED FEDERAL LOAN and then deferr it for five years ..that way you dont have to make any payments or pay any interest on it for five years.....but yea your current car now is not gonna hold up on so many frequent trips...
hopes everything works out for you.....
2006-07-24 17:19:10 · answer #3 · answered by outspokenone 3 · 0⤊ 0⤋
Not sure of your age/status/housing plans. But, if you're living on campus, can you have someone else move you in and out of your building every year and either fly, take the train or the bus home during the breaks? Accordingly, if you're living in an apt offcampus, would you be able to travel home in alternative methods?
2006-07-24 23:03:52 · answer #4 · answered by ronnieneilan1983 3 · 0⤊ 0⤋
personally, i would put back five thousand and try to make my car last as long as possible. if your car gave out before you plan you will always have at least five thousand for a down payment. i just think with going to school that is more then enough to be worrying without the worries of a car payment.
2006-07-24 17:17:38 · answer #5 · answered by prin_cess1128 1 · 0⤊ 0⤋
Take the bus home and study during your trip. You will get two birds with one stone. You will save money on gas and wear and tear on your vehicle.
2006-07-24 17:14:17 · answer #6 · answered by Anonymous · 0⤊ 0⤋
take the public transportation.. it will help you save money for your college. If you can afford afford dorms or college housing, go for it. It will lessen your travel time allowing you to have more study time.
2006-07-24 17:16:40 · answer #7 · answered by Jon 5 · 0⤊ 0⤋
why don't you move closer to school? The savings in gas alone would be enoug to cover rent.
2006-07-24 17:15:12 · answer #8 · answered by acholtz@verizon.net 3 · 0⤊ 0⤋
I'd wait and use the money for your classes.
2006-07-24 20:09:56 · answer #9 · answered by nolyad69 6 · 0⤊ 0⤋