I need a car but have been denied from my bank and other sources because I just don't have enough income. It's a catch-22 because I'm a student and only have enough time for a part-time job, so therefore I only make about $400 a month. One loan I haven't tried is a private after-Stafford loan from Sallie Mae and other companies. One of the criteria on the application is if you need money for book, supplies, transportation, etc. My question is: Would a $16,000 loan for a car count for the transportation needs? I have a piece of crap Jeep right now with other 200,000 miles that I fear is going to break down any time I drive it, if that helps.
2007-12-04 03:40:53 · 5 answers · asked by listen_to_the_stills 2 in Cars & Transportation ➔ Buying & Selling
I graduate in May and with the loan I'm looking for--one that would allow a new vehicle to fit in the "transportation" costs--I would be able to defer payments until 6 months after graduation. I will have a job and will be able to afford paying off the loan.
2007-12-04 03:51:20 · update #1
Student loans are for education costs not cars. Transportation is meant for bus fare or train fares to get you to class not a car. It's like buying a house with your student loan because you need housing.
Buying a car on a student loan is a bad idea. Are you going to defer the loan until after you graduate and then have to pay 10 years on a car that is long gone. Aside from being a really bad idea it also probably fraud since you aren't spending your student loan on actual school expenses.
Why don't you A) Fix the Jeep or B) Sell it and buy a cheaper used car.
No student, working their way thru school on a part time job should be spending $16K on a car.
I just saw your additional details. If you are graduating in May why don't you let the Jeep limp along for another 6 months and then go buy a better car when you get a full time job.
2007-12-04 03:57:13 · answer #1 · answered by mccoyblues 7 · 0⤊ 1⤋
Firstly, the student loan can not be used for a vehicle. Transportation costs may apply to bus fare or gas, but the purchase of the car is not an educational expense.
The other thing is that it is just not the fiscally responsible thing to do. If you can't qualify for it at a bank, you probably can't afford it. You say that you will have a job after graduation, but you don't know what kind of income that will provide. You may have an idea of how much but you really don't know. Don't create more liabilities for yourself before you even start out in life. It takes a long time to catch up. Check out the public finance or credit forums on here and look at how many people with jobs are looking for ways to get out from under debt.
2007-12-04 04:30:24 · answer #2 · answered by Jay P 7 · 0⤊ 0⤋
Ho do you plan to make the payments on a sixteen thousand dollar loan and live at the same time?
2007-12-04 03:46:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A student loan is for tuition, books and related items....not for a car.
2007-12-04 03:54:31 · answer #4 · answered by Otto 7 · 0⤊ 0⤋
i think student loans by and large are meant for
school tuition.
2007-12-04 03:44:10 · answer #5 · answered by Jerry S 7 · 0⤊ 0⤋