Car loans and med school

[Gottalaugh]

I have had a horrible week with my car. Unfortunately, I need to begin looking for another car immediately. I am concerned about making payments during medical school. I have income now to make the monthly payments. However, I have heard from some financial aid officers at a few medical schools that car loans are not factored in your student budget for med schoo loans. I would appreciate any insight from medical students in this situation as to how I can manage this. Public transportation is not an option for me right now as a result of where I live and work.

Thanks,
GL

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[Cobragirl]

Unfortunately, it's not a "few" medical schools that don't factor in car loans, it's almost ALL of them. What SOME schools DO figure in is "maintenance" (i.e.- gas, insurance, maintenance)...but like everything else on a school budget, the money allowed is usually MUCH lower than reality. I think my school gave me ~$80 a MONTH for my car, better than nothing, but unfortunately $80 barely covers gas, let alone insurance and any repairs I might need. (and this is for a car that gets 30+mpg and has a warranty still!) My $300 payment comes straight out of my (well, my hubby's) pocket.

I hate to be the bearer of bad news, but if you need a new car, I suggest you get an efficient, cheap one!

 

[Billie]

Cobragirl is right, but I do have the other side of the coin. My school as well (a DO school) does not factor in car payments. But their budget for my housing was like $400 or something. Well, my school is in a RURAL area. Sure there was fantastic housing at that price, but I found a nice one bedroom apartment for a little over half that. The difference more than made up for my car loan payment. I hadn't ran out and bought a brand new car before school either, I was just finishing up paying off my 5 year car loan from some time ago.

But the other thing that many do (which I am not advising, but I am just saying it happens) is that at the end of second year when many students go out on rotations and live in student housing (for free usually) they buy themselves a NEW car at the end of second year/start of third. Their thinking is that they have this "extra" money that they do not have to spend on housing, so they can spend on car payments.

I would take Cobragirl's advice and try to go as cheaply as possible. But I will also say that I did not have any problem making my car payments, even living off student loans.

 

[Gottalaugh]

Thank you both for your responses! I am aiming for something fairly cheap, yet it needs to be reliable since I have a 1.25-2 hour commute to work. I currently live in New Jersey and could likely end up going to school here. Cost of living is high - I am just concerned about overspending the budget. I am definately going to try your avenue, Billie, and seek out the most reasonable housing. I do know people out here who could probably give me some leads into decent rent rates.

It's funny. I didn't even give this a concern until I received an acceptance and realized I needed to start really thinking about what I am going to do next year. I figured the stress would subside somewhat with the acceptance .

GL