Can I use a student loan or financial aid to buy a car?
I will be starting college this fall. There are several things that I need (not like want or think i need but really need). Things like clothes, shoes, and a bookbag are the main things. But I really need a car. There are ways for me to get to school other than my own car but they are not practical on an everyday basis. My financial aid is paying for my tuition completely. I was wondering if i could take out a student loan for about 4,000 to cover the costs of getting a car, paying the 1st 6 mos of insurance, and buying some clothes. If so, is it possible to do with NO credit (good or bad) and no cosigner? if so, please let me know where…
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Student loans are for paying college costs (tuition and fees). If there is a remaining balance after tuition has been paid, your university will cut you a check for the balance.
This money can be used in whatever manner you would like. However, it is unlikely that as a freshman you will find yourself with an additional 4,000 dollars after tuition is paid.
So, if you are wanting an additional 4,000 dollars you are going to have to try and take out a regular loan. It might be possible for you to get a loan, but you will most likely end up with a very high interest rate.
So, your best bet is to start saving money up now and pay in cash. You aren’t in school right now so there is no reason why you can’t take a couple of extra jobs and save all your earnings.
When schools starts you can probably still manage a part time job.
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4 years ago
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Don’t tell them.. I was attending school 45 minutes from where I lived.. No bus transportation, couldn’t afford taxis, etc. My car played out. The school told me I could use my money to repair my car ($10000 to repair a car worth $500).. WHen they found out I bought a car for $2000, they had a fit and started preaching at me because I should have just got the other fixed (right). As a freshman the most loans you can take out is about $2500 loan..sub and unsub and max $4000 pell.. You will NOT get enough to buy a decent car after your expenses are paid. GL
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Students who are looking for a bad credit student loan should pick three schools they are most interested in, talk to the admissions office, and ask what is needed to apply in their school.A bad creditdepending on whether you are a homeowner or not. The rate of interest to be paid on unsecured bad credit student loans is higher than that on secured bad credit student loans. This is because the secured bad credit student loans are backed by your home as a security.
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Not ethically you can do it. But the financial aid programs do not check on what you buy they just cut you a check. So, yeah, you purchase a vehicle.
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4 years ago
thats an interesting question and I hope you’ll get some valuable answers
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4 years ago
Loved this question
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5 years ago
Was curious on the answer to this as well
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yes you can that is what financial aid is for
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