the city i live in offers no form of public transportation
and a student does need transportation...
so could i buy a cheap, used car with my student loan???
2007-04-03 02:53:00 · 6 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
Neniaf is right. It depends on how much money you have left over after you pay tuition, etc. Schools will give you loans up to your budget, which they set. (This includes school costs, rent, books, misc./entertainment, etc.). If you have money left over first, pat yourself on the back for living frugally, then use it for what you want (you could even save it to help you pay back the loans later on). But, I agree, this probably won't be enough to buy you a car. The cost of buying and/or maintaining car usually isn't figured into the student budget for living expenses. If you must have a car for your commute and your car breaks down, you can talk a financial aid counselor to see if they would increase your budget to help you pay for the repair costs. However, I don't know if they would give you an increase to purchase a car in the first place - seems very unlikely. Alternatively, there are other costs that can be used to increase a student's budget. For example, health care costs above and beyond the usual and childcare if you are a parent. Again, you'd talk to the financial aid office about this. Is there anyway that you can move to a location closer to your school? Universities and colleges often provide free bus passes to students.
2007-04-03 04:54:54 · answer #1 · answered by Midwest Mom 2 · 0⤊ 0⤋
You can't buy a car with your student loan, you'll either have to supplement with a small part time job or have your parents contribute a portion towards the car. For the idiot who told you to tell the bank when you apply for a student loan and say it's for something else is fraud because they ask questions. Your student loan is only for expenses like room and board and supplies. If you take out a loan it's the one for personal use and make sure that you understand the terms and conditions because many places give you a grace period before the repayment phase starts.
2007-04-03 11:15:24 · answer #2 · answered by nabdullah2001 5 · 0⤊ 1⤋
You cannot borrow a federal student loan for the purpose of buying a car. Federal regulations are specific on this. Can you use a refund of other aid to buy a car? Yes, you can, but you cannot borrow for a car this way.
Also, telling a lender for a commercial loan that you are borrowing for one purpose, but using the funds for another purpose is fraud and the lender can require immediate repayment of the loan as a result or may prosecute you. Your best bet is to borrow honestly, or find a place to live close enough to school to walk to class or to commute or carpool with others.
2007-04-04 10:23:49 · answer #3 · answered by mickiinpodunk 6 · 0⤊ 0⤋
It depends on what kind of loan you have. If you get it from your school, you can only take out so much at a time, and your tuition gets paid from it directly first, which may not leave you enough to buy a car. If you take out an outside loan from a bank or someone, you can use it for whatever purpose you choose. Just realize that whatever you use it for, you have to pay it back!
2007-04-03 10:00:16 · answer #4 · answered by neniaf 7 · 0⤊ 0⤋
yep just tell the bank its for something else once the money is in your account its yours you can spend it any way you want
2007-04-03 10:01:14 · answer #5 · answered by crs_one_1999 1 · 0⤊ 1⤋
Sure.
2007-04-03 09:57:44 · answer #6 · answered by Anonymous · 1⤊ 0⤋