Financial aid is a resource available to those who meet the eligibility requirements. The availability of financial aid and the amount you receive depends on your specific situation and financial needs.
If you’re planning on buying a car with the help of financial aid, here are some ways in which you can use it to purchase a vehicle. Financial aid programs are designed to help people meet their educational costs.
As such, if you’re hoping to use these funds for something other than tuition or other instructional costs, read on for information about how financial aid can be used to buy a car.
Check Your Eligibility
To begin, make sure you meet the basic requirements to qualify for financial aid. The amount you receive depends on your specific situation, as well as other factors such as your family’s income and assets, your age, and the cost of your education.
If you’re hoping to use financial aid for the purposes of buying a car, it’s important to understand the following.
- What types of financial aid you qualify for – The availability of financial aid varies, depending on the type of assistance that is offered. You may qualify for student loans, grants, or work-study.
- The types of expenses you can use financial aid for – While you can use financial aid to cover a variety of expenses, there are some limitations.
Borrow through the Student Loan Program
A loan is a type of financial aid that you borrow and must repay, usually with interest. If you qualify for a federal student loan, you can use the funds to apply in a Special Finance Auto Leads company and buy a car.
You can repay the loan once you’ve paid off the car. Always remember that there’s limit on the loanable amount. Your financial aid administrator can assist you with finding out more.
Use Grant Assistance to Buy a Car
A grant is a type of financial aid that you don’t have to repay. While you can use grant assistance to buy a car, you’ll want to make sure that you don’t use grant money to repay a loan. To avoid confusion, you may want to work with your financial aid administrator to decide how you’ll use the grant funds.