Overhaulin'

should i buy a new car with my student loans?

the interest rate in my student loan is 6%, i need a car and it is my last year of school, should buy a car from my student loans?

Public Comments

1. absolutely not. You would be a complete moron to go purchase a new car when youre getting out of school, already in large amounts of debt. If you need an auto, buy an inexpensive, reliable used one.
2. get a nice used one why have high payments on a new car?
3. NO, Students loans are for students education. If you use it for a car and they find out, it may be illegal and you may face a fine or they may turn it over to a regular loan and charge you more interest. I would not do it unless the school is paid for and then they couldn't prove you bought the car or paid for school.
4. Can you buy one? Sure you can, but I wouldnt' suggest it. Ideally you need to understand that you "HAVE" to pay this back. But I would evaluate "why" you "need" a car. Many times ppl confused wants with needs. In addition, that money is suppose to go towards housing, tuition, books and additional school expenses. Therefore I would make sure all of those obligations are paid for before even considering the idea. Nevertheless, it is easy to spend money when you don't' have to work for it up front. I would just say use your best judgment and evaluate why you think you need a car, because in the end this money will still be coming out of your pocket.
5. That would be the wrong thing to do. The one thing you don't want to do is putting yourself in more debt. You can probably get an older and good running car for under $3000 and make arrangements to finance it over time. The bottom line is to have money available when you need it most, like in an emergency.
6. Nope.
7. Absolutely not. It's not worth it, pay off your loans. Use a bike, GAS is rather expensive nowadays... its up to $3.40/gallon (for the cheapest quality & brand) in southern california.
8. It would depend on what your "need" for that car is. If you are receiving student loans, while someone stated earlier that it is for tuition, books, and housing, it ALSO includes transportation, so that if transportation is a "need" for you, then I would. I certainly would NOT use the money for some gas guzzeling type of show piece, however a sensible, reliable used vehicle would be within your means. You will need reliable transportation to get to school, look for a job upon graduation and maintain employment afterwords. I think that it is perfectly acceptable to use it for that, as long as you aren't getting a lexus, I think that it is acceptable!!! And no, it isn't illegal. If you have been funded the money, and it has been given, as long as your school stuff is taken care of so that it doesn't interfere with you school needs GO FOR IT!!! Good Luck!!