Something you may not have considered regarding your career plans (that I can only vaguely remember from some D&D posts):
If you're hoping on a career working for the government in a sensitive (security-clearance required) position.. filing for bankruptcy is going to double-dick you over.
This is absolutely true. Any sort of ding on your credit report at all means a much longer wait, and if they suspect you have financial trouble you will be denied your clearance.
Well then it's a good thing I decided not to file!
0
Options
GnomeTankWhat the what?Portland, OregonRegistered Userregular
I got my clearance when my credit was shaky, it's not impossible...but yes, it's not good. Certainly if you owe a bunch of money to someone, they are going to take a hard look. Promise of money to pay debts is one of the fastest ways to turn someone in to a leak.
Out of curiosity, when in the car buying process do you start talking to insurance agencies? I'm going to be buying a car in the next few weeks, but I'm not quite sure which one. Is it a waste of time to talk to auto insurance places before I have the car picked out?
Out of curiosity, when in the car buying process do you start talking to insurance agencies? I'm going to be buying a car in the next few weeks, but I'm not quite sure which one. Is it a waste of time to talk to auto insurance places before I have the car picked out?
Most insurance companies have an online calculator. I'd start there with the cars you are looking at.
[SIGPIC][/SIGPIC]
wrote:
When I was a little kid, I always pretended I was the hero,' Skip said.
'Fuck yeah, me too. What little kid ever pretended to be part of the lynch-mob?'
Get quotes for several vehicles you're looking at before you actually buy. Depending upon your age, driving history, chosen coverage, and vehicle choice your insurance payment can vary considerably and you don't want to be ready to ink a car dear just to find out you cannot afford the insurance.
Out of curiosity, when in the car buying process do you start talking to insurance agencies? I'm going to be buying a car in the next few weeks, but I'm not quite sure which one. Is it a waste of time to talk to auto insurance places before I have the car picked out?
depends on the state i think. In MD, you have to have insurance to drive off the lot. Especially so if you are financing it. They wont give you a loan if you don't have insurance.
Out of curiosity, when in the car buying process do you start talking to insurance agencies? I'm going to be buying a car in the next few weeks, but I'm not quite sure which one. Is it a waste of time to talk to auto insurance places before I have the car picked out?
depends on the state i think. In MD, you have to have insurance to drive off the lot. Especially so if you are financing it. They wont give you a loan if you don't have insurance.
Yeah this varies widely by state. Georgia gives you 7 days to get insurance coverage.
0
Options
amateurhourOne day I'll be professionalhourThe woods somewhere in TennesseeRegistered Userregular
Out of curiosity, when in the car buying process do you start talking to insurance agencies? I'm going to be buying a car in the next few weeks, but I'm not quite sure which one. Is it a waste of time to talk to auto insurance places before I have the car picked out?
depends on the state i think. In MD, you have to have insurance to drive off the lot. Especially so if you are financing it. They wont give you a loan if you don't have insurance.
Yeah this varies widely by state. Georgia gives you 7 days to get insurance coverage.
Typically though, regardless of state insurance laws, dealerships who sell you a car or the bank giving you the loan are selling you secured debt and that requires insurance, right?
Out of curiosity, when in the car buying process do you start talking to insurance agencies? I'm going to be buying a car in the next few weeks, but I'm not quite sure which one. Is it a waste of time to talk to auto insurance places before I have the car picked out?
depends on the state i think. In MD, you have to have insurance to drive off the lot. Especially so if you are financing it. They wont give you a loan if you don't have insurance.
Yeah this varies widely by state. Georgia gives you 7 days to get insurance coverage.
Typically though, regardless of state insurance laws, dealerships who sell you a car or the bank giving you the loan are selling you secured debt and that requires insurance, right?
Yes, for sure. The terms of the loan require you to carry comprehensive insurance, but the dealer doesn't require to see proof of insurance before letting you leave here.
This is false. I've lived/worked around cars and repairs, along with insurance agencies and lawyers my entire life. Some companies don't even ask the color. Also, what happens if you paint your car? Would you be obligated to inform your insurance company? No, because they don't care.
Weird, my parents were getting charged more for their red car of the same model, different year than what they are now. Might just be my local insurance being jerkfaces, who knows, or maybe they're lying.
not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
0
Options
amateurhourOne day I'll be professionalhourThe woods somewhere in TennesseeRegistered Userregular
Weird, my parents were getting charged more for their red car of the same model, different year than what they are now. Might just be my local insurance being jerkfaces, who knows, or maybe they're lying.
If it was a different year that would explain the difference. It could be the changes in engine power or crash safety or one of a thousand other things that put the same make and model car from a different year into a different cost.
It's the same reason that a two door car might have a different insurance rate from a four door car, when both are honda civics.
I did. The range was basically $300-350, but my dad really liked Mercury for whatever reason. He made the initial lump-sum payment, so I didn't argue.
Oh god. Mercury? Never, never, never, never NEVER do business with Mercury, ever.
IAAL. I don't handle car accident cases, but I have colleagues who do. They don't like any insurance companies, as you might imagine, but they hold a special place open in the Hall of Douchebaggery Fame for Mercury Insurance.
Three lines of plaintext:
obsolete signature form
replaced by JPEGs.
0
Options
MichaelLCIn what furnace was thy brain?ChicagoRegistered Userregular
Take a look at Amica.
Cheaper than Allstate/StateFarm but well-liked around here, and has gotten good reviews.
I have ~$11,000 left to pay off, and I made the April, May, and June payments (and plan to continue making them), but a friend made what I think is a valid suggestion. Can I use a student loan to pay off the debt for the time being, and then either start paying off the lower-rate student loan right away, or defer paying that off until I graduate (or potentially have it forgiven after awhile if I go into government service) ? This would really give me some breathing room in the immediate future, as $310/mo on a ~$500/mo income really squeezes my finances. I understand that I'm under a contractual as well as ethical obligation to pay back the car, regardless of whether or not it's in my possession (no progress on that, btw), but this student loan thing doesn't sound like a bad idea.
EDIT: I should mention that I have no other personal debt -- my credit cards are all paid off, and while I'll probably be taking on ~$3,000 in a subsidized student loan this fall to study in Dubai, I don't anticipate incurring any other major debt in the foreseeable future.
A refund received from a student loan is your money to do with as you see fit. So, yes. I know several people who have taken out student loans to do this very thing - paying off a debt when things get a bit too hairy.
It's not a terrible idea, but don't do it unless you're absolutely sure you're okay to pay off what you owe. You can't get rid of student loans, even through bankruptcy.
Gamertag: JHunz. R.I.P. Mygamercard.net
0
Options
L Ron HowardThe duckMinnesotaRegistered Userregular
I don't know where you are, Hamurabi, but this is very US-centric. Sorry if it doesn't pertain to you.
It's a horrible idea. It's illegal to use the student loan money for anything that doesn't pertain to survival (food, rent, utilities) and schooling. That's always stated in the terms of the loan themselves. If you're getting a federal loan, they make you take a test (or at least they did when I was filling out the stuff for a loan a couple years ago), where in they explicitly state that it's wrong to use the money to buy a car. It's mentioned in the 'study guide', and is on the test in a couple of places.
I don't know where you are, Hamurabi, but this is very US-centric. Sorry if it doesn't pertain to you.
It's a horrible idea. It's illegal to use the student loan money for anything that doesn't pertain to survival (food, rent, utilities) and schooling. That's always stated in the terms of the loan themselves. If you're getting a federal loan, they make you take a test (or at least they did when I was filling out the stuff for a loan a couple years ago), where in they explicitly state that it's wrong to use the money to buy a car. It's mentioned in the 'study guide', and is on the test in a couple of places.
Well, this does fall under the category of "survival." I'm getting less in Pell Grant money this year than I did last year (hooray arbitrary age cutoffs for becoming an "independent," even though nothing about your financial situation has changed at all, and in fact you're making less money than you did the previous year), so I'll have to cover more of my schooling out-of-pocket than I used to. If $500/mo didn't cut it before, it definitely won't now.
In any event, I'll ask my local Wells Fargo branch people about it. I've definitely heard of people using student loan money for things that aren't strictly tuition or books.
0
Options
FiggyFighter of the night manChampion of the sunRegistered Userregular
I don't think it's against any terms to use the money as you see fit. In fact, in Ontario, the tuition portion is automatically paid to the school and you get the remainder.
You don't get it in a gift card to the book store. It's not a cheque written out to the landlord. It's your money.
If its straight from your loan, most student loans forbid you to use it on anything except bare necessities. Cars are not part of that.
If it's a refund from your school, I am less clear on the details but so long as you're making the payments I think it's better to have the cash on hand.
It's a horrible idea. It's illegal to use the student loan money for anything that doesn't pertain to survival (food, rent, utilities) and schooling.
Loan, not refund. I do not know of any institution giving out student loans that give a check to the STUDENT first and not the school. If the OP is getting a REFUND after the loan has been disbursed, they can 100% do whatever they want with the cash.
ED! on
"Get the hell out of me" - [ex]girlfriend
0
Options
kaliyamaLeft to find less-moderated foraRegistered Userregular
If its straight from your loan, most student loans forbid you to use it on anything except bare necessities. Cars are not part of that.
If it's a refund from your school, I am less clear on the details but so long as you're making the payments I think it's better to have the cash on hand.
What does "straight from your loan mean" separate from "refund"? You are receiving a loan. Usually loans are transmitted directly to the university, but this is a prudential thing so that people don't spend their tuition money because they've been wired $20k. There's no difference when you receive the money. It's yours, and it would be subject to whatever rules exist.
That said, where are people getting that it would be "illegal" from? In any event, transportation costs are an educational expense. It's a bad idea because you are exchanging a debt dischargeable in bankruptcy for student loan debt, which, in one of the most nauseating give-aways to the finance industry that exists in the united states code, are nondischargeable.
It's a bad idea because you are exchanging a debt dischargeable in bankruptcy for student loan debt, which, in one of the most nauseating give-aways to the finance industry that exists in the united states code, are nondischargeable.
Well, I'm exchanging it for a debt that: I don't have to begin to pay off (or can choose to only pay the interest on) until I'm out of school; will almost undoubtedly be at a lower interest rate than my car loan was; and might eventually be forgiven entirely when and if I become a federal employee (and even if it isn't, $11k isn't going to absolutely kill me).
If its straight from your loan, most student loans forbid you to use it on anything except bare necessities. Cars are not part of that.
If it's a refund from your school, I am less clear on the details but so long as you're making the payments I think it's better to have the cash on hand.
What does "straight from your loan mean" separate from "refund"? You are receiving a loan. Usually loans are transmitted directly to the university, but this is a prudential thing so that people don't spend their tuition money because they've been wired $20k. There's no difference when you receive the money. It's yours, and it would be subject to whatever rules exist.
That said, where are people getting that it would be "illegal" from? In any event, transportation costs are an educational expense. It's a bad idea because you are exchanging a debt dischargeable in bankruptcy for student loan debt, which, in one of the most nauseating give-aways to the finance industry that exists in the united states code, are nondischargeable.
I'm not saying it's illegal (though if it's a government loan, it may be).
I'm saying that *typically* when an entity provides a student loan there are stipulations. Some even require the school to RETURN the refund.
The flip side being a personal loan used for tuition costs, to which the loaning entity would provide the cash directly to the end user. There's a difference.
With my student loans, the amount needed to cover tuition was sent straight to the school and then they wired the remainder to my bank account. I don't see any reason why you couldn't use it to pay off the car loan, as long as you are willing to pay off the loan after you graduate.
Obviously they don't want you taking out money and then going crazy throwing parties and buying boats or something, but in this case he already owes the car money so . . . *shrug* He's going to pay it back, after all, and hopefully after he graduates he will find a job that makes paying back the student loan a lot easier than it would be to pay back the car loan month by month right now.
amateurhourOne day I'll be professionalhourThe woods somewhere in TennesseeRegistered Userregular
There are specifics as to what you can use student loan money for, it depends on the loan as to what those specifics are. Private student loans tend to be more loose than federal loans, but for what it's worth I knew more than a few people in college who used student loan money (after they paid tuition) to cover rent and car payments as well.
I have ~$11,000 left to pay off, and I made the April, May, and June payments (and plan to continue making them), but a friend made what I think is a valid suggestion. Can I use a student loan to pay off the debt for the time being, and then either start paying off the lower-rate student loan right away, or defer paying that off until I graduate (or potentially have it forgiven after awhile if I go into government service) ? This would really give me some breathing room in the immediate future, as $310/mo on a ~$500/mo income really squeezes my finances. I understand that I'm under a contractual as well as ethical obligation to pay back the car, regardless of whether or not it's in my possession (no progress on that, btw), but this student loan thing doesn't sound like a bad idea.
EDIT: I should mention that I have no other personal debt -- my credit cards are all paid off, and while I'll probably be taking on ~$3,000 in a subsidized student loan this fall to study in Dubai, I don't anticipate incurring any other major debt in the foreseeable future.
...I don't quite follow your proposed plan.
You have the debt from the car, and you want to use your student loan to pay out the debt... but then won't you more or less be tapped-out as far as the student loan money is concerned? If so, how are you going to pay for the things your loan is meant to cover (books, food, etc)?
I have ~$11,000 left to pay off, and I made the April, May, and June payments (and plan to continue making them), but a friend made what I think is a valid suggestion. Can I use a student loan to pay off the debt for the time being, and then either start paying off the lower-rate student loan right away, or defer paying that off until I graduate (or potentially have it forgiven after awhile if I go into government service) ? This would really give me some breathing room in the immediate future, as $310/mo on a ~$500/mo income really squeezes my finances. I understand that I'm under a contractual as well as ethical obligation to pay back the car, regardless of whether or not it's in my possession (no progress on that, btw), but this student loan thing doesn't sound like a bad idea.
EDIT: I should mention that I have no other personal debt -- my credit cards are all paid off, and while I'll probably be taking on ~$3,000 in a subsidized student loan this fall to study in Dubai, I don't anticipate incurring any other major debt in the foreseeable future.
...I don't quite follow your proposed plan.
You have the debt from the car, and you want to use your student loan to pay out the debt... but then won't you more or less be tapped-out as far as the student loan money is concerned? If so, how are you going to pay for the things your loan is meant to cover (books, food, etc)?
It's possible to get supplemental student loans. He's talking about getting more student loan money than he actually needs, and using the extra to pay off the car so his "effective" payments on the car will be deferred until he's paying off his student loans.
Yeah, pretty much. Pell Grants cover maybe 80-90% of my total school expenses now that I'm getting less Pell Grant money (for having turned 24 and become an "independent") in the 2012-2013 academic year. I'd have to actually get a separate loan, because apparently if I request loans directly through my school's online interface, I'm capped at $3,500 in subsidized and $3,000 in unsubsidized loans per semester; paying off my car would require a lump sum of ~$11,000.
I have absolutely no idea regarding the legality of this approach, or any concern regarding auditing.
That said, I've seen other people do similar things, and as long as the interest rate on the loans is low and won't be ballooning after X years, it makes plenty of financial sense.
Yeah, pretty much. Pell Grants cover maybe 80-90% of my total school expenses now that I'm getting less Pell Grant money (for having turned 24 and become an "independent") in the 2012-2013 academic year. I'd have to actually get a separate loan, because apparently if I request loans directly through my school's online interface, I'm capped at $3,500 in subsidized and $3,000 in unsubsidized loans per semester; paying off my car would require a lump sum of ~$11,000.
6,500 is a limit (for sophomores, iirc?) for dependent students. as an independent student your subsidized loans are still capped pretty low but your total borrowing amount per year is higher- it's like 10,500 as a sophomore and 12,500 for years 3, 4, 5, etc
Posts
This is absolutely true. Any sort of ding on your credit report at all means a much longer wait, and if they suspect you have financial trouble you will be denied your clearance.
This needs to be repeated.
Miss. Fortune is in a committed relationship with you right now, no need to go buying her a ring.
Most insurance companies have an online calculator. I'd start there with the cars you are looking at.
depends on the state i think. In MD, you have to have insurance to drive off the lot. Especially so if you are financing it. They wont give you a loan if you don't have insurance.
Yeah this varies widely by state. Georgia gives you 7 days to get insurance coverage.
Typically though, regardless of state insurance laws, dealerships who sell you a car or the bank giving you the loan are selling you secured debt and that requires insurance, right?
Yes, for sure. The terms of the loan require you to carry comprehensive insurance, but the dealer doesn't require to see proof of insurance before letting you leave here.
This is false. I've lived/worked around cars and repairs, along with insurance agencies and lawyers my entire life. Some companies don't even ask the color. Also, what happens if you paint your car? Would you be obligated to inform your insurance company? No, because they don't care.
A google appears!
http://www.800-insurance.com/program/autoinsurance/car_insurance_articles/top_10_auto_insurance_delusions/
Just the first I could find.
Also, http://www.progressive.com/newsroom/2005/July/myths-reality.aspx
If it was a different year that would explain the difference. It could be the changes in engine power or crash safety or one of a thousand other things that put the same make and model car from a different year into a different cost.
It's the same reason that a two door car might have a different insurance rate from a four door car, when both are honda civics.
Oh god. Mercury? Never, never, never, never NEVER do business with Mercury, ever.
IAAL. I don't handle car accident cases, but I have colleagues who do. They don't like any insurance companies, as you might imagine, but they hold a special place open in the Hall of Douchebaggery Fame for Mercury Insurance.
obsolete signature form
replaced by JPEGs.
Cheaper than Allstate/StateFarm but well-liked around here, and has gotten good reviews.
I have ~$11,000 left to pay off, and I made the April, May, and June payments (and plan to continue making them), but a friend made what I think is a valid suggestion. Can I use a student loan to pay off the debt for the time being, and then either start paying off the lower-rate student loan right away, or defer paying that off until I graduate (or potentially have it forgiven after awhile if I go into government service) ? This would really give me some breathing room in the immediate future, as $310/mo on a ~$500/mo income really squeezes my finances. I understand that I'm under a contractual as well as ethical obligation to pay back the car, regardless of whether or not it's in my possession (no progress on that, btw), but this student loan thing doesn't sound like a bad idea.
EDIT: I should mention that I have no other personal debt -- my credit cards are all paid off, and while I'll probably be taking on ~$3,000 in a subsidized student loan this fall to study in Dubai, I don't anticipate incurring any other major debt in the foreseeable future.
It's a horrible idea. It's illegal to use the student loan money for anything that doesn't pertain to survival (food, rent, utilities) and schooling. That's always stated in the terms of the loan themselves. If you're getting a federal loan, they make you take a test (or at least they did when I was filling out the stuff for a loan a couple years ago), where in they explicitly state that it's wrong to use the money to buy a car. It's mentioned in the 'study guide', and is on the test in a couple of places.
Well, this does fall under the category of "survival." I'm getting less in Pell Grant money this year than I did last year (hooray arbitrary age cutoffs for becoming an "independent," even though nothing about your financial situation has changed at all, and in fact you're making less money than you did the previous year), so I'll have to cover more of my schooling out-of-pocket than I used to. If $500/mo didn't cut it before, it definitely won't now.
In any event, I'll ask my local Wells Fargo branch people about it. I've definitely heard of people using student loan money for things that aren't strictly tuition or books.
You don't get it in a gift card to the book store. It's not a cheque written out to the landlord. It's your money.
If it's a refund from your school, I am less clear on the details but so long as you're making the payments I think it's better to have the cash on hand.
Loan, not refund. I do not know of any institution giving out student loans that give a check to the STUDENT first and not the school. If the OP is getting a REFUND after the loan has been disbursed, they can 100% do whatever they want with the cash.
What does "straight from your loan mean" separate from "refund"? You are receiving a loan. Usually loans are transmitted directly to the university, but this is a prudential thing so that people don't spend their tuition money because they've been wired $20k. There's no difference when you receive the money. It's yours, and it would be subject to whatever rules exist.
That said, where are people getting that it would be "illegal" from? In any event, transportation costs are an educational expense. It's a bad idea because you are exchanging a debt dischargeable in bankruptcy for student loan debt, which, in one of the most nauseating give-aways to the finance industry that exists in the united states code, are nondischargeable.
Well, I'm exchanging it for a debt that: I don't have to begin to pay off (or can choose to only pay the interest on) until I'm out of school; will almost undoubtedly be at a lower interest rate than my car loan was; and might eventually be forgiven entirely when and if I become a federal employee (and even if it isn't, $11k isn't going to absolutely kill me).
I'm not saying it's illegal (though if it's a government loan, it may be).
I'm saying that *typically* when an entity provides a student loan there are stipulations. Some even require the school to RETURN the refund.
The flip side being a personal loan used for tuition costs, to which the loaning entity would provide the cash directly to the end user. There's a difference.
Obviously they don't want you taking out money and then going crazy throwing parties and buying boats or something, but in this case he already owes the car money so . . . *shrug* He's going to pay it back, after all, and hopefully after he graduates he will find a job that makes paying back the student loan a lot easier than it would be to pay back the car loan month by month right now.
No it's not-as long as like others have said, he is sure that he can pay off.
The police isn't going to drop by if he pays off his loan with this money, in fact, no one is ever really going to know what the money is used for.
...I don't quite follow your proposed plan.
You have the debt from the car, and you want to use your student loan to pay out the debt... but then won't you more or less be tapped-out as far as the student loan money is concerned? If so, how are you going to pay for the things your loan is meant to cover (books, food, etc)?
It's possible to get supplemental student loans. He's talking about getting more student loan money than he actually needs, and using the extra to pay off the car so his "effective" payments on the car will be deferred until he's paying off his student loans.
That said, I've seen other people do similar things, and as long as the interest rate on the loans is low and won't be ballooning after X years, it makes plenty of financial sense.
6,500 is a limit (for sophomores, iirc?) for dependent students. as an independent student your subsidized loans are still capped pretty low but your total borrowing amount per year is higher- it's like 10,500 as a sophomore and 12,500 for years 3, 4, 5, etc