Can I Use My Student Grant Or Loan To Buy A Cheap Used Car Legally?
A very common question and one that we receive quite frequently. Determining whether you can buy a car with your student loan or grant funds is pretty straightforward. First and foremost it is important to understand that Student loans are to be used for covering the cost of your education, books, food, housing and finally transportation. Quite often students will find that they have additional funds left over and are in a quandary on how to put it to best use.
As explained above, your student loan funds are to be primarily used to fund your college tuition, pay for your room and board. It is advisable to use any funds left over for education and living expenses. Education expenses could include books, a computer, a laptop, lab supplies and of course school supplies.
Living expenses could include paying rent and used for traveling back and forth to your school or college campus. In some cases additional fund are included in the student loan itself to cater for these expenses. If you live far enough from your college campus then using the leftover funds to buy a car to help you to travel to school or college campus can be acceptable.
The key caveat to remember is that you spend the student loan funds first on your education and any surplus funds can then be used to help you fund your living educational and certain living expenses.
So yes, you could use your leftover student loan or grant funds to buy a car provided
- The bulk of your student loan or grant funds have been used for to fund your education
- The left over funds from your student loan or grants allow you to buy a car for the primary purpose of commuting to your school campus
Below is an example question on this topic.
I am going to go to online college. So I don’t need a car for that reason. But I do need a car to go get printer paper and school supplies whenever I need them. I would also like a car for reasons that are off the college subject. I have a son, and I need a car to take him to doctors appointments etc.
So can I use my federal pell grant or student loan to buy a car? I need a car to go buy a laptop, printer paper, and other school supplies. I live in California, and applied at the University of Phoenix online college.
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It should be 4-door, 4-cyls, not sporty. I would prefer Honda or Toyota… First time drivers usually have much more expensive car insurance, and it depends from car. You should compare insurance rates while choosing the car – for example here – carquotes.fateback.com
If you receive a refund (U of P is expensive), then you can use it for pretty much anything. Yes, it’s supposed to be for school-related purposes, but you just proved that you can make anything a school-related purchase. You could state that you need the car to take your child (if you have one) to daycare so that you can complete your studies, or simply for buying school supplies like you mentioned.
universities.atwebpages.com – it provides some tips about applying to US federal and state grants for college students.
please can someone,ANYONE HELP ME?IAM A SINGLE MOTHER OF A 2 AND 6 YEAR OLD BOYS AN UNEMPLOYIED AT THE TIME I WOULD LOVE TO GO BACK TO SCOOL,ON-LINE.THE UNIVERSITY OF PHOENIX HAS THE CLASSES I WANT TO TAKE I WOULD JUST LOVE FOR THE REGULAR KINDA PERSON TO TELL ME HOW TO GET STARTED ON GETTING GRANTS SO I CAN GO FOR FREE AND ALSO ABOUT GETTING A LOW PRICE CAR WOULD BE AWSOME.PLEASE HELP ME OUT.THANK YOU VERY MUCH
Try applying for fafsa, easiest application process. sorry no link, just Google it.
Anyone going to school I would honestly recommend a community college. Employers rarely take online degrees seriously. I am a working student and mother. Community colleges are way cheaper and offer a wider variety of classes. Plus you can always change your major with more ease at a community college, which everyone says they won’t but they always do. The best way to go is is the haseo said by going to the website http://www.fafsa.gov apply yourself and be sure to include the school code it will help you with that. And best of luck to you all.
Ok first off employers do not know if you did an online college or not, the degree says the college name, not ONLINE. I do Liberty University online, my degree says Liberty University ( if you do not know, it is the largest Christian college).
Second, you can use the loan to buy a car, it specifically says that you can use the loan for transportation. Buying a car ( affordable not an audi or BMW) is transportation (that is unless it is a cheap used BMW or Audi, then it is ok). But the point is still that cheap and affordable. Remember you will be paying off that car for 10 years.
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