Use student loan to buy a car?

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Gabriel Jast asked a question: Use student loan to buy a car?
Asked By: Gabriel Jast
Date created: Mon, Jan 18, 2021 7:18 PM
Date updated: Mon, Sep 12, 2022 1:49 AM

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Video answer: I used my student loan to buy a new car!

I used my student loan to buy a new car!

Top best answers to the question «Use student loan to buy a car»

You can use student loans to pay for a college's cost of attendance, and the cost of attendance includes transportation, so can you use student loans to buy a car? You cannot use student loans to buy a car. If you live off campus, having a car may be a necessity, but the college doesn't require it.

Video answer: Should i use my student loans to buy a car?

Should i use my student loans to buy a car?

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Use Car Loans, Not Student Loans. Should you need to purchase a vehicle while attending college, student loans are probably not the way to go. If financing is your only option, it’s best to obtain a car loan rather than using your student loans to fund your purchase. Car loans typically have much lower interest rates, and the terms of the loan will be much shorter.

If you do decide to buy a car, I'd buy a cheap one (less than $5000) and use a car loan instead of student loans to buy it. A car loan (without knowing anything about your personal credit history or other debt issues) will likely have an insurance rate about half of what your student loan rate will be.

While it’s not against the law to use left-over student loan money to purchase a car, using student loans to buy a car isn’t the best use of that money. It’s a much better idea to save your student loan money and use it to pay back your student loans.

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