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.
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clevermoose
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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?

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NYC Law
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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
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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.

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vanwinkle
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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.




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