Can you pay for a car with med school loans (Grad PLUS)?

[watchergub]

My medical school is requiring me to have a car. Am I allowed to use my loan money to buy this (or request an increase in COA) since it is required? I'm not planning on going out and buying something fancy and new obviously, but I don't have any money to purchase a car with otherwise.

---

Members don't see this ad.

 

[bollywoodlover]

Wow. I didn't know some med schools require a car. How would a med school feel about an applicant who could not drive I wonder?

I imagine you can use your grad plus loan for whatever you want theoretically since they usually just put it in your account. I've heard of people using grad loans to support their families and kids so I see no reason why you can't use whatever you have left over to buy a car with.

 

[battousai]

I would advise against it. If it's available in your area, I recommend just signing up with zip car and only using it when necessary. Cars are expensive to buy and maintain; that and the fact that you'll be paying 8% interest on it will really hurt your wallet.

 

[kami333]

No, you can't (or at least aren't supposed to) use federal loan money for buying a car nor can you request a COA adjustment to buy one. However you do what you have to do and schools understand this (nudge nudge wink wink), which is why at many schools you can take out less than the COA and still live fine.

 

[jemstone]

Could you just get a separate car loan? I don't know the actual numbers, but possibly you could at least get a better interest rate?

 

[kami333]

Could you just get a separate car loan? I don't know the actual numbers, but possibly you could at least get a better interest rate?

You still need to somehow come up with money to make the monthly loan payments, you won't be able to defer them until residency.

 

[Sophocles]

OP could buy a small 1k or 2k car since its required and that way he won't have to worry about payments- then take out another 1k for insurance; hopefully it's that low. I doubt anyone will give OP a car loan if he is going to be a full time student w/o a job and this kind of diminishes his options.

 

[Doctor Strange]

Is riding a bike an option?

 

[Sabate]

Definitely look into getting a zipcar or throw down a bit for a beater that will survive 3rd and 4th year. Way cheaper options and buying a car on GradPLUS loans would suck...

 

[BuddyTheElf]

If you want to buy a car from a dealer, take out an auto loan! As long as your credit score is decent, you get a much better rate! 2% is so much nicer than 7%.

Edit: The only downside is you can't defer these loans like student loans

 

[kami333]

If I really needed a car for clerkships and didn't have one already, I'd seriously consider just leasing a SmartTwo Coupe for $99/month.

 

[watchergub]

I would advise against it. If it's available in your area, I recommend just signing up with zip car and only using it when necessary. Cars are expensive to buy and maintain; that and the fact that you'll be paying 8% interest on it will really hurt your wallet.

This is actually a really good idea. But zip cars in my area are notoriously unreliable since there are very few in comparison to the amount of undergraduate students in the area. I don't think this would be a very reliable option.

OP could buy a small 1k or 2k car since its required and that way he won't have to worry about payments- then take out another 1k for insurance; hopefully it's that low. I doubt anyone will give OP a car loan if he is going to be a full time student w/o a job and this kind of diminishes his options.

Yeah I would think my only option would be to buy a super beater. But even that would cost a couple thousand like you said and unfortunately, I'm a new-ish driver (from the city) and I just got my license so insurance rates will be higher.

No, you can't (or at least aren't supposed to) use federal loan money for buying a car nor can you request a COA adjustment to buy one. However you do what you have to do and schools understand this (nudge nudge wink wink), which is why at many schools you can take out less than the COA and still live fine.

This seems to be the case with my school. They require me to own a car from year 1 but simultaneously tell me that I cannot pay for said car with financial aid... I understand that we can't use federal funds frivolously and all that, but seriously. If you tell me that I need to have a car as part of my educational program, shouldn't I be able to use educational funds for that? I think my only option is to try to see how much play room I have within the current COA.

 

[kami333]

This seems to be the case with my school. They require me to own a car from year 1 but simultaneously tell me that I cannot pay for said car with financial aid... I understand that we can't use federal funds frivolously and all that, but seriously. If you tell me that I need to have a car as part of my educational program, shouldn't I be able to use educational funds for that? I think my only option is to try to see how much play room I have within the current COA.

Federal regulations. Just like how your COA is calculated for only 9-10months.

 

[watchergub]

Federal regulations. Just like how your COA is calculated for only 9-10months.

Bah. I hate Congress. <shakes fist>

But seriously, the smart car is not a bad idea. Unfortunately, I'm going to be attending school in one of the snowiest areas of the US... anyone want to comment on how the SmartTwo coupe handles in winter weather conditions?

 

[sinombre]

Bah. I hate Congress. <shakes fist>

But seriously, the smart car is not a bad idea. Unfortunately, I'm going to be attending school in one of the snowiest areas of the US... anyone want to comment on how the SmartTwo coupe handles in winter weather conditions?

Just install one of these bad boys and you'll be set: