How do student car loans work?
I'm a college freshman and I'd like to buy a car, so I'm considering getting a student car loan. How do these loans work?
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Answered on Mar 12, 2021
Students with limited income, limited credit, and the burden of tuition fees and loans can have some trouble getting an auto loan, but there are lenders out there willing to work with them. Getting good grades, building credit, and saving for a down payment are just a few steps students can take to make approval a little easier and more likely. Getting a cosigner is also a good idea.
There are some lenders out there that do offer students loans with an extended term to help keep monthly payments low. However, most student auto loans do have a few drawbacks, such as high interest rates and a cap on maximum loan amounts. Otherwise, student car loans are very similar to every other auto loan.
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