Overhaulin'

Can I use my FAFSA refund to buy the car?

I got my FAFSA ( financial aid) refund. It's was several thousand dollars. So now i want to buy a car. Can I use that money for that purpose? My concern is when I filled out 08-09 FAFSA, they think me have enough money to buy a car, so that's mean I'm able to pay for my college institution also. Therefore they will not give me financial aid for next year. Any comment will appreciated.

Public Comments

1. Yes, you can use it for whatever... what you receive is based on the estimated cost of your education, so if you have leftover money after school is paid for, it is, in essence, your money. HOWEVER... I did exactly that, and a few years out of school i'm in a bit of a bind. I used up all my federal aid (free money), spent it on a new car, etc... Now i'm back in school trying to get a different degree, and there is no more grant money left for me (the govt limits how much you get for free before you have to start taking out loans). So, I'm currently about $50,000 in debt from loans, and still in school. So if I were you, as tempting as it is to spend that money, try to save as much of it as you can. you might need that FAFSA money down the road, then it won't be there. Good luck!
2. Once you get your money, it is yours. No one is keeping track of what you are doing with it. Financial aid is awarded contingent upon federal income taxes for you and your parents, if you are a dependent student. So the next school years award will be based on the 2007 income tax filing. Spend money now and call the bank of mom and dad later. You are not the only one. I've seen plenty of people blow all the financial aid money during first few weeks of school. We all live and learn. Of course, the money is supposed to be for school related expenses but you need a car to get to school, correct? Wink, wink.