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Author Topic: Can use a part of your loan money to finish paying off your car??  (Read 3651 times)

cam108

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I was curious to know if that is posssible or will I just have to sell it and buy a bucket? I don't think it's gonna be possibe for me to finish paying it off by the time school starts. There's gonna be about $7,000 left so it would be nice if they let you borrow money for that as well. But i'm sure they prolly dont right?  :)
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jacy85

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #1 on: April 22, 2005, 01:04:37 PM »
You can borrow the limit your school sets.  Say your school's budget for rent/expenses/etc is $13000.

That means you have $13000 to live on for 9 months.  That's what you pay rent with.  What you buy groceries with.  You can do whatever you want with the money, but if you have no other means of support (parents, SO, whatever), you can easily screw yourself.  Do you have the means/ability to take over half of that money and pay off your car?  Think carefully about what money you have coming in.

And on a side note, I can almost guarantee that your school will NOT increase your budget to pay off your car.  They'll laugh at you if you ask, and then tell you to sell it and get something cheaper.

bruin

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #2 on: April 22, 2005, 01:13:15 PM »
Technically, you are not allowed to use student loans to pay for a car. It is part of the loan agreement. But there is nothing stopping you from doing so, you just cannot ask for more loans to compensate.
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cam108

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #3 on: April 22, 2005, 08:27:55 PM »
thanks for the info guys! :) Suppose I really have no choice but to sell it.
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JeffB

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #4 on: April 23, 2005, 12:48:23 AM »
You can use your loan money for anything that is school related.  That includes transportation to and from school.  So yes, you can use your loan money to pay off your car. 
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bruin

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #5 on: April 23, 2005, 03:36:29 AM »
All of the student loan papers that I have seen specifically state that loans can not be used to pay for a car. The transportation part of the budget includes expenses related to owning a car, but not the purchase of a car. So no.
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HippieLawChick

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #6 on: April 23, 2005, 08:35:43 PM »
Why don't you try to refinance your car loan?  If you have paid on time for 12 months and there is still less owed than the value, you can refinance and extend the repayment period.  I did this years ago.  I got a lower interest rate and my payments went from $250/month to $160.  It may help.  Also, there is no reason why you can't just get a second job for the summer and use all the money to pay for the car.  $7000 isn't that hard to come up with.

likebutta10

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #7 on: April 25, 2005, 10:32:22 AM »
Hey Cam - I seem to be in the same situation. My plan was to take out a loan for living expenses for the 1st year to pay off my car loan. I have my wonderful BF who will be paying for our living expenses while I am in school.
That is, if I get in somewhere!

cam108

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #8 on: April 25, 2005, 01:18:20 PM »

Hey Cam - I seem to be in the same situation. My plan was to take out a loan for living expenses for the 1st year to pay off my car loan. I have my wonderful BF who will be paying for our living expenses while I am in school.
That is, if I get in somewhere!
[/quote
Thats a pretty good idea. dont know if my SO would be able to afford it though! :)
Well as of now, i've saved almost half the money ,my job offers lots of overtime, but then i was thinking i would feel odd using most of my savings to pay off the car. So i dunno what i'll end up doing. I'm kinda in the same boat as well becaue  i've been accepted to schools where me and SO pretty muct agree we dont want to go too. And I was just rejected from one of my top choices. So i'm still waiting to hear back from several schools. I saw you are interested in South Texas as well, have you visited yet?
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likebutta10

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Re: Can use a part of your loan money to finish paying off your car??
« Reply #9 on: April 26, 2005, 12:23:19 PM »
 Cam- Yes, I am very interested in South Texas. It seems to be the only choice I have left. I have not visited yet, waiting on an acceptance letter due to distance. I live in New York, so Texas is quite a hike. From what I hear it sounds like a decent school. I am still worried about the 60,000 in debt though.
After my Stetson rejection, I decided to retake the LSAT in June and apply next cycle. I am not 100% convinced that I want to move to Houston and attend South Texas. But, if I get accepted, I will def. have to visit...I've never even been to Texas. How do you feel about the school and the 60,000 debt load for a 4th tier school??