Can you use your student loan to buy a car?
This is a tricky situation, and one we recommend you speak to an expert about. To get more specific advice tailored to your individual situation, you can fill out this short form and we’ll put you in contact with the representative from one of our partners who can guide you through the process.
But generally: if you have a federal student loan, you cannot use excess funds to buy a car. If you do so you run the risk of being audited and losing all the funds you’ve been awarded. Federal work study programs can be an exception, however. Since they are grants rather than loans, they don’t require repayment, and if you can get approved for a federal grant of this nature, the funds can be used as you see fit. More is available from FAFSA (Free Application for Federal Student Aid).
However, if you have a private loan, and you can demonstrate that the vehicle is necessary for your daily commute to classes, you may be able to use a student loan to buy your car. Also, we can help you find affordable rates on student auto loans, even if you don’t have credit. Click here to get quick quotes on a student auto loan.