student loan for car during undergrad work

[reachforthesky]

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Hi guys, I know this has been talked about in previous threads but not specifcally my dilema so:

I am still doing my basic coursework at the community college level. As with the crumy economy i'm not able to pay my way this next year. (2 years of my undergrad is covered by a scholarship) I get no aid from Fafsa, and am looking into taking out a loan for expences as well as a cheap car.

My primary question is, has anyone else done so or recomend taking out a loan(unsubsidzed gov.) to purchase a vehicle? I'm looking around the $1,000-2,000 range. I worry making purchases like that now will really add up at the end of vetschool. But I also need to be able to get around!

thanks!

 

[Wolphcats]

I suggest talking with a fin. aide counselor at your current school. I think there is items you are "technically" allowed to purchase with loan money... though I doubt the government will be breaking down your door checking to see what you purchased with your loan money. My personal two cents is that if you need a car to attend school, then it might be a wise investment. Otherwise, don't be ashamed of utilizing public or alternative (car pool, biking, etc) transportation.

 

[thearsonist]

I'm surprised that you didn't receive any aid from the fafsa.
My family makes a significant amount of money and i was still offered $6k.

I do believe you can use your student loans for school related things, such as a car, but you should always check. Also, it may be best to look into leasing a car or buy a new one. Even though it's a significant expense, it's better than spending $2k here, and $2k there because the cars aren't as reliable. i think i went through 3 cars in my undergrad, because i just needed it to get me from A to B, so I didn't spend much. My junior year I bought a brand new car and haven't had a problem since.

Also..don't be afraid to carpool or take the metro bus, like wolphcats said.

 

[Tobysgirl81]

Hi guys, I know this has been talked about in previous threads but not specifcally my dilema so:

I am still doing my basic coursework at the community college level. As with the crumy economy i'm not able to pay my way this next year. (2 years of my undergrad is covered by a scholarship) I get no aid from Fafsa, and am looking into taking out a loan for expences as well as a cheap car.

My primary question is, has anyone else done so or recomend taking out a loan(unsubsidzed gov.) to purchase a vehicle? I'm looking around the $1,000-2,000 range. I worry making purchases like that now will really add up at the end of vetschool. But I also need to be able to get around!

thanks!

Some things to look into would be going through a local credit union to get either a personal loan or a car loan. If you have good credit you may get a decent personal loan to cover whatever expenses you need covered - its kind of like an open line of credit. Don't treat it as your own personal free meal bar and you should be fine. But this can be used to pay personal expenses, car expenses, etc.

On the other hand, most credit unions will offer low interest rate loans on vehicles that are 5 years or younger. You will be hard pressed to find ANY institution (short of the car lot themselves which should generally be avoided) that will lend you money to purchase a vehicle older than 5 years. Its weird, but I think its to avoid the possibility of the vehicle having multiple problems or potentially breaking down while still paying for it. Not a good situation for lender or lendee. So if you're looking for a newer vehicle, it might be the way to go.

The only thing to look out for in both those situations is they require monthly payments. They are not like your traditional school loans which allow you to default until the end of your schooling. If you need funding like that you're going to have to talk to the financial aid office at your school and see what they can offer you! I'm also surprised FAFSA can't offer you any money, especially since it sounds like you're struggling to make ends meet. There are some low income options available in some states - one year of my community college was paid for in full by a state grant for low income families (I was independent of my parents and made miserable income with my job at the time). There are tons of options out there, but its good to talk to your advisor to find out what's available to you!

 

[reachforthesky]

Thanks everyone!
I have before looked into my credit union and got declined. I set up another appointment with my fin. aid person to go over everything again(have in the past) to see what my options are.

I am a very active user of mass transit(great up here in the Northwest) and also ride my bike a ton. But a car is pretty essential too, so my struggle was just deciding do I take out the loan and pay it off after school, or go to the car lot and set up payments/etc through them?

What did you all do while in undergrad/vet school? I'm assuming most people have cars.... did you have it since before college? or buy it while attending?

 

[Tiktaalik]

Hi guys, I know this has been talked about in previous threads but not specifcally my dilema so:

I am still doing my basic coursework at the community college level. As with the crumy economy i'm not able to pay my way this next year. (2 years of my undergrad is covered by a scholarship) I get no aid from Fafsa, and am looking into taking out a loan for expences as well as a cheap car.

My primary question is, has anyone else done so or recomend taking out a loan(unsubsidzed gov.) to purchase a vehicle? I'm looking around the $1,000-2,000 range. I worry making purchases like that now will really add up at the end of vetschool. But I also need to be able to get around!

thanks!

If I recall correctly, you can't just take out the government loans - your school has to (in conjunction with the FAFSA application) submit an estimate of costs, and the government loans will only cover those costs.

For example, this semester, the school budgeted me for tuition, transit costs (just enough for gas or bus pass, not a whole car) and room and board. I could only take out gov't loans up to the maximum amount that the school said I needed. I couldn't just go and apply for them cold. The FAFSA (I think), also determines if you're qualified for those loans, so if you don't get any allowances under FAFSA, you can't take them out.

That's how it works for grad/vet/med students, anyway.

You could take out a private loan for school/car, but those have high interest rates, and would require the same approval that your credit union has apparently already denied you...

Are you CERTAIN that the FAFSA said you can't get ANY money? I'd go chat with financial aid about it. The FAFSA is supposed to determine if you can afford school, so if you can't afford school and the FAFSA still says you don't get any money, I'd be concerned.