Can you use Grad PLUS loans to buy a new car? Is there a max amount of GRAD PLUS loans you can take?

[techiewizz]

When I will be starting med school I will want to buy a new car. Perhaps a honda civic for something like 18k.

Also, I will be financing med school through the government financial aid! Let's keep the long story short: my parents won't be filling out the fafsa. And I really don't want to go into the details about that, so let's focus on the topic that I am asking about.

Is there a maximum amount of money that I can take out through GRAD PLUS loans? I have no loans coming from undergrad, if that means anything. I also have no credit history whatsoever.

Can I sneak in an extra 18k in grad plus loans to buy a car? I really don't want to do the whole car payments thing, I just want to buy it in full. Or are grad plus loans specifically calculated or something?

---

Members don't see this ad.

 

[Tungsten5]

You will definitely not be able to sneak 18k straight to pay for a car outright.

They are calculated by a need set by your school.

 

[RangerBob]

You will definitely not be able to sneak 18k straight to pay for a car outright.

They are calculated by a need set by your school.

Correct. You can only borrow up to the total estimated cost of attendance, unless you are able to get a budget increase. Some schools will allow a budget increase for vehicle payments. But even if your schools allows it, most will only cover "reasonable" monthly car payments, and if you're lucky, part of a down payment.

I would also think twice about buying a brand new car on borrowed money at the beginning of medical school. If you have an old car--keep driving it. If you have to replace your car, I think buying a reliable used car is a much better way to go.

 

[DrMidlife]

Find your school's financial aid home page. Then find the "budget" or "cost of attendance". That is what determines the max you can borrow. You get no say in your budget or cost of attendance.

If you can fit a car payment in the provided living expenses budget, great. Submit to experienced adult supervision to make sure you get something reliable and low-maintenance. Salespeople don't count.

 

[Chris51385]

Wrong. You absolutely can buy a car --or anything u may need for that matter-- with refund Grad Plus money. But how much you get back depends on factors such as whether you're going full or part time and what your school's cost of attendance is. For me, I'm attending part time and can still borrow up to the full cost of attendance nevertheless. I'll def have enough to get a new cheap car and plan to do so! And yes, it's necessary.. My life would fall apart without reliable transportation and my car is on it's very last legs. The conditions of a federally sponsored loan are far better than that of some car loan. It just can't be swept away in a potential bankruptcy. But the gov works with you pretty fairly with repayment options and such. And should you not be able to afford a month's student loan payment, at least you won't have to worry about your car getting repossessed!

 

[DrMidlife]

Sure. You can always spend your rent money on a car. This assumes you have another way to pay rent.