<p>I want to buy a car. I probably need at least $3,500 to do so. It would take me a long, long time to save up that money working at the kinds of jobs I can get (minimum wage) right now. I was talking to one of my roommates and a student loan sounds like the best option, since the interest rates are very low and I don’t have to start paying it back till after I graduate. Hell, he has like $80,000 in debt and it’s only gonna go up from there since he’s in law school now. I would hope that with the degree I’m getting I’ll have a decent job by the time I graduate, so I’m not too worried about being able to pay it off (although going into debt for any extended period of time does scare me a little).</p>
<p>So yeah, how does one go about getting these loans? I was reading the StudentLoans.gov site and it was kind of confusing. The way people talk about student loans made me think they’re as easy to get as mortgages were back in 2005, but it definitely doesn’t seem that way.</p>
<p>To get a private student loan you will need a co-signer. If you have a co-signer with good enough income and credit to co-sign a student loan you should just have them co-sign a car loan for you because with decent credit a car loan will be lower interest then a student loan and a car loan is easier to get then a student loan since its secured.</p>
<p>What about the federal loans? 3.4% on a Stafford is lower than what my bank offers for car loans (5.04%).</p>
<p>You get direct loans through your school. They should have been in your financial aid package. If not then you will need to contact your school to ask about it. Keep in mind direct loans are paid directly to the school first and then what is left after all of your billed expenses are paid will be refunded to you. It is an EXTREMELY BAD idea to by a car with a student loan.</p>
<p>Did you complete FAFSA? The subsidized loan (which is the one with the 3.4% rate) is need based, so you would have to have unmet need in order to be awarded it. If you have unmet need, it would already be in your FA award. If you have filed FAFSA and do not have a subsidized loan awarded to you, it is unlikely that you are eligible for one.</p>
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<p>So . . . get a less expensive car!!!</p>
<p>Or, go with Plan A and take your financial advice from a kid who hasn’t even graduated yet and is already $80,000 in debt.</p>