Can I get in trouble if I buy a car with money from a Stafford loan, for school?

Question

I'm a single mom and haven't had a car since last August. I have not worked much because I have been going to school full time. I could work and make decent money but I enjoy my little girl and hate seeing as little as I do now, let alone if I worked more. Anyhoo, I changed directions in school and decided to go for the LVN program, which will start this fall if I get in *fingers crossed*. Well, we will have clinicals 2-4 days a week or more and I will NEED transportation to get there. I live in a small city that has no public transportation. And, some of the clinicals are over 30 miles away. She already said in the advisement session that they choose the locations. I will probably talk to her and tell her about my situation but I still need to prepare for the worst. I have had a hard enough time so far having to trade off my mom's car with her everyday. There is no way I can with clinicals. Anyhoo, the financial aid advisor said that I CANNOT buy a car with fin. aid. What gives?

Answer 1

dont do it. you will jeopardize future loans. and get in trouble. may have to give it back.

Answer 2

You can use the money to purchase the car. Just say you needed the car for school if they ask and therefore the money is being used towards your education because you need a way to get to and from school! Either way you are going to have to pay this money back so i don't see why you couldn't use it especially if you need a car in the first place to get to school and back home. Good luck!

Answer 3

Technically the loan money will initially go to paying tuition and you'll get what's left.  After that the school has no way of knowing what you use it for.  In my case I had to take out student loans in grad school which I used to pay for my living expenses since I could only work part time.  So I don't see why you couldn't use the money you receive from the loans to purchase a car.

Answer 4

You are not suppose to buy a car with student loans.  That being said, they aren't going to track you down and see how you actually spend that money.  but I will say this, most of the time student loans are barely enough to pay for your tuition, books, uniforms, etc.  Rarely will you ever get enough to buy an entire car!!!  Besides, do you want to be paying on that cheap car for the next 15 years?  You will if you go that route.