PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can I use student loans to buy a car?
I’ve been looking for a new car, and I just got my student loan funds deposited into my account. Can you use student loans to buy a car or is it illegal?
Matthew Macgugan · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A car is a great thing to have in college! While it’s not necessarily illegal to use student loans to buy a car, you should probably still avoid it. Student loans could potentially cost you more than a car loan.
Most
car loans
last six or seven years at most, while student loans can last as long as 10-20 years depending on the loan repayment plan you choose. Income-based repayment plans can last even longer. Most people don’t drive their car for 10 or more years. It wouldn’t make sense to use your student loan to pay for a car, then spend longer paying it off than you drive it.Subsidized and unsubsidized student loans often come with higher interest rates than a typical car loan, meaning you will end up paying more interest charges on your loan than necessary.
You are better off looking into a standard car loan and using your student loans for education-related expenses.
If you do decide to buy a car, no matter how you pay, you’re going to need car insurance. To begin your search, download the
Jerry
app! Just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry customers save an average of $879 a year.Good luck!
MORE: How to get a cosigner for a bad credit car loan
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
