Can I use a student loan to buy a car?
There is a thing from chase bank saying you could get up to $40,000 my tution is only about $18,000 so could i maybe borrow enough to buy a car? My school is over 4 hours away, and i really could use a car so i could come home every now and again. I know it sounds like a stupid question, but I know absolutely nothing about the loan issue.
Any comments would be appreciated!
Thank you 🙂
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To my knowledge, an educational loan is only to be used for the direct costs of an education. You would need to check with the lender…most of them have websites that will explain it all. But keep in mind that you will have to pay the loan back, with interest, once you graduate. By the time you are done, the interest alone on the extra $12,000 would be more than you would have paid on a car loan. Also, if you are not finished your schooling, you need to be sure you will be able to get funds as you progress. Using nearly half of the loan amount for a vehicle could leave you stuck come junior year!
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4 years ago
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If you are talking about making a cash purchase of a car, yes, you would be able to do that. It is unlikely that an appropriate lending institution will allow you to get a car loan using a student loan as a source of income.
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It has been done, what you do with the money is really your business, just remember you DO have to pay it back eventually. Of course it is probably somewhat a fraudulent use of the money but you would not be the first nor the last to do this.
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Hi
well you can get really good cheap cars from auctions , you will find thousands of different auction and repo cars of all kinds of models really cheap at http://www.carauctiondeals.com
Hope this helps
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