what exactly can you pay for with loans?

[Dciple]

Hey everyone,

I have been searching google and this forum for a lil over 2 hours now and haven't really found any exact answers to my questions, so I figured I would just make a new thread (sorry if I am restating a lot of questions that have already been asked :-/)

As the title says, what exactly do student loans for medical school allow you to pay for? I know that there are several different types of loans (Stafford, GradPLUS, etc.) but from what I have read it seems like you barely get enough money to live. For example, I am (hopefully) relying on loans to help me pay for a car (preferably brand new/newer, since right now I have a '93 that is on its way out), rent, food, tuition, books, and whatever other school related items.

The main thing I want to know about is the car (along with insurance, gas, etc). Anyone else in the same boat or an actual med student with loan experience?

Thanks in advance for any info or helpful links

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[TMP-SMX]

Loans are definitely not going to pay for a new car. Technically they don't even pay for a used car either. However, you can probably scrounge around the money with loans to pay for a cheaper used car. Gas is paid for as is cheap insurance in a general. I don't know if where you will end up for med school, but here is the estimated budget at U of M. If you find somewhere cheap or cut out costs elsewhere you can find the money to pay for other things. FA offices are also generous in increasing CoA if needed for certain exceptions. Car payments is not one of them though.

 

[futuredo32]

I know several students who made car payments (for a new car) with the money they got from their financial aid. At my school, we got between 25,000-29,000 a year.

 

[TMP-SMX]

I know several students who made car payments (for a new car) with the money they got from their financial aid. At my school, we got between 25,000-29,000 a year.

It is possible at certain schools if you cut corners on other expenses. It isn't a good investment though considering you are paying 6.8% on the student loans plus whatever the payment plan is.

 

[mikecougarmd]

I believe a car payment is one expense that is explicitly stated as NOT being covered by student loans. Insurance, registration, gas, and maintenance are all covered, but not car payments.

 

[Grif]

I've had three schools so far allow for cars, and two that said that they didn't (but also mentioned creative rearranging of money so that you could get a car with it). My new school in NJ allows it as well, even though they're distance learning.

My current school says that the money can go for anything "except cigarettes, alcohol, illegal drugs or gambling" and those are supposed to be the rules per the local DOE rep (WA). FinAid offices that I've known have previously okayed cancer treatments, cosmetic surgery (hihi!) and purchasing a foreclosed house.

Also: they will not check. Ever. If you don't want to step on toes, just call up and ask if you can spend your disbursement on transportation (you can specify "used car" or whatever if you want). My experience is that 2/3 will say "Sure" and 1/3 will say "No, but you can spend it on X which will free up your own money to be used on a car." It can't hurt to ask.

 

[Dciple]

Thanks everyone for your input. All very interesting answers...I'll probably talk to the Financial Aide office of whatever school I choose and find out what they think.

 

[TMP-SMX]

You can spend whatever you want with your loan disbursement. I'm just saying most schools are not going to increase your cost of attendance for car payments. If you don't need the full amount of money then of course you can make ends meet with what they give you. Most schools are generous with the CoA.

 

[Vitamin K]

The real question is "Why would you want to waste your money on a brand new car (which will lose value faster than you can drive it off the lot) if your total income is only 25k/year???" Might be time to re-evaluate your financial sensibility. This is how our economy got so crappy in the first place. People buying things they can't afford.

 

[Grif]

The real question is "Why would you want to waste your money on a brand new car (which will lose value faster than you can drive it off the lot) if your total income is only 25k/year???" Might be time to re-evaluate your financial sensibility. This is how our economy got so crappy in the first place. People buying things they can't afford.

Of course you will want to spend money on a reliable car that doesn't cost that much. I'm thinking specifically of some cars that are a few years old but that are pretty inexpensive and run well.

Obviously, if the OP has a car that is 16 years old (for crying out loud), they aren't "spendy" with cars and instead go for ones they can maintain over the long haul. You can get a great car for less than $15K, and I would expect that everyone knows that.

 

[Dciple]

The real question is "Why would you want to waste your money on a brand new car (which will lose value faster than you can drive it off the lot) if your total income is only 25k/year???" Might be time to re-evaluate your financial sensibility. This is how our economy got so crappy in the first place. People buying things they can't afford.

Of course you will want to spend money on a reliable car that doesn't cost that much. I'm thinking specifically of some cars that are a few years old but that are pretty inexpensive and run well.

Obviously, if the OP has a car that is 16 years old (for crying out loud), they aren't "spendy" with cars and instead go for ones they can maintain over the long haul. You can get a great car for less than $15K, and I would expect that everyone knows that.

I did not ask this question to find out if I would have enough money in loans to buy a ferrari. I simply wanted to know if I would have a couple hundred left over per month to throw at a car payment or to put toward a loan that I would get to buy a car that is between 6 and 7 thousand.

Vitamin, I am actually quite mindful about what I spend my money on and you should really check your tone before assuming things about people that aren't even true. Especially if you want to make a good doc one day...

BTW, thanks for the defense Grif, much appreciated. I have maintained that car all through college and intend to sell it this summer for approx half of what I bought it for since it needs more repairs now than the car is even worth .

 

[Grif]

I have maintained that car all through college and intend to sell it this summer for approx half of what I bought it for since it needs more repairs now than the car is even worth .

You're welcome. I can't believe so many people jump to assumptions and conclusions here. I guess Students+Stress+More Stress+Outlet for Anger=Come to SDN and chew people out.

I'm currently getting the same flack over a computer. It needs $450 more in repairs (not a guaranteed fix), oooor I could custom-build one for $800 that will get me through grad school. Sometimes the "savings" isn't worth the headache of having something old and prone to breakage.