Purchasing a car with student loans

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
User avatar
clevermoose

New
Posts: 85
Joined: Sun Sep 13, 2009 12:15 pm

Purchasing a car with student loans

Postby clevermoose » Sun May 29, 2011 1:17 pm

Is a car an appropriate (legal) item to be bought with student loans? Can it be considered an educational expense?

Have any of you known someone to do this?

User avatar
NYC Law

Gold
Posts: 1563
Joined: Thu May 26, 2011 3:33 pm

Re: Purchasing a car with student loans

Postby NYC Law » Sun May 29, 2011 1:25 pm

You can do it but they won't increase your budget for it, so you'd just have less to live off.

Renzo

Gold
Posts: 4254
Joined: Tue Dec 02, 2008 3:23 am

Re: Purchasing a car with student loans

Postby Renzo » Sun May 29, 2011 1:38 pm

It's legal to spend your loan money on anything you want. But, it's not a budgeted-for expense, nor is it an educational expense, so they won't lend you money for that purpose. You could, however, decide not to have an apartment, for example, and buy a car instead.

User avatar
vanwinkle

Platinum
Posts: 8954
Joined: Sun Dec 21, 2008 3:02 am

Re: Purchasing a car with student loans

Postby vanwinkle » Sun May 29, 2011 1:42 pm

Your loans are to be used for whatever living expenses you find necessary. If you can budget car payments into your loan disbursement and still afford things like an apartment and clothes, then go for it.



Return to “Financial Aid�

Who is online

Users browsing this forum: No registered users and 3 guests