Been there, done that my whole life, have plenty of trucks and my houses are paid for.
Debt should be reserved for things you can live in, and acquiring debt you don't need for actual survival in the current economy is a bad idea. Things may get much, much worse and do it with little warning...

 

I have a friend who has made a handsome living collecting on old student loans. I would obtain a loan from the right source so you do not run into issues down the road.

 

Save up $800 for a 90's Ford Escort, get a Chilton's manual, and some common sense. This isn't the worst idea I've read on FTE, but it's up there.

 

I don't know if the rules have changed since then but when I went to school, nobody at the bank asked me what I was doing with the money. I bought my wife's engagement ring with a Pell grant and a student loan and paid off my '87 Ranger with another one. I was at school courtesy of a National Guard tuition waiver, was getting a monthly check from the Veteran's Administration, took about $5000 a year in student loans, got Pell grants and even snagged a couple grants from the college just because I asked for them. I could have gone out and gotten a low-paying job instead but college paid pretty well for me and I graduated with about $15k in debt that I paid off in a couple years.

Anyway, my student loans weren't in repayment until six months after graduation. A couple of mine had no interest accruing until I graduated, some just didn't require payments but had interest accruing. Unless the bank requires the check to be paid directly to the school, what you do with the money is your responsibility. Good luck and have fun.....

 

Um, alright well I don't buy crap or "A-B cars",
I've got an old Montero that I use as a driver/wheeler, I've got a 59 f250 I'm fixing up(a "someday project"). I've been looking to get a diesel truck for quit a while but wanted to get into school before I committed my money to it.

I love to drive, 4wheel and work on vehicles and there's no way I would settle on a vehicle just cause it's the cheapest way from A to B.

If I'm going to spend any more than $500 on a vehicle it's going to be exactly what I want otherwise I'd just be throwing money away.

I'm just trying to look at different options I have. Maybe I'm wrong but I thought student loans where given to people in school and you weren't necessarily required to spend it on tuition.

 

pretty much how it was when I was in school (01-04)

 

From what I saw when I was looking at auto loans, you can only get that low of an interest rate on an auto loan if you are buying a BRAND NEW ('09-'10) vehicle.

 

My bank is 4.74% for new. I can't find the used cars loans on there site but they are usually 1 to 1.5% more. Still around 6%

My other bank is 60 months for used car (2004-2010) at 5.375

Of course this is provided you have good credit.

 

My school offered finantial aid and in the description it listed transportation. My whole aid for the first semester was around 2400 bucks. I used 1700 of it to buy my truck. They had no problem with it.

 

My son just left college last year. He financed college with student loans and scholarships. The scholarships paid for his student fees and tuition only. The loans paid for his books and dorm fees and food. There was enough left to buy an 82 Wagoneer that he drove through school with some mechanical help from me or his brother when needed and also to get a nice Apple laptop too. They don't care what you do with excess loan money.

Chris

 

There's a world of difference between what you can do with student loans and what you should do. Buying an '82 Wagoneer or a $1700 pickup truck is the exact kind of vehicle a college student should be driving. Financing a brand new vehicle, however, is a terrible idea.

When you're in college and you're living on a budget, you should buy something that gets you from A to B. Borrowing any more than you absolutely need when you're in school is going to lead to a lot of hassle and regret when you're out of school. It's also a terrible financial decision because the interest rate on an unsubsidized student loan is much higher than a car loan you could get from the bank or a credit union once you're employed, so you could potentially pay a lot more money in the end if you go this route.

 

Not to mention if you buy a vehicle using a student loan you will be paying for that vehicle for many years.

 

Delete please