Can I use a school loan to buy a car?
I just got through my freshman year at college. Now that I’m a sophomore, I’m allowed to have a car. The only problem is that I don’t have one. However, I have my student loan money for next semester and I’m tempted to use it to buy a car. Should I use a school loan to buy a vehicle?
- Student loan rates are higher than car loan rates.
- Student loans are meant to be paid back over a long period. You wouldn’t get a 10-year car loan, so you wouldn’t want to do the same with your school loan.
- You may not have enough money left for boarding, food, and tuition.
- Borrowing a car from your parents or a family member
- Saving up cash to buy a used car
- Getting a car loan that has a low monthly payment
- Using a carsharing service such as Turo when you need a ride