Credit card.

[Tenacity]

Frayzer,

I understand, but in this case with your 2 jobs, how are you getting there currently? I would assume either the bus or you have people dropping you off?

When you add in attending college to get the associates degree, if you have people dropping you off or if you are catching the bus right now, that's three different spots you have to "stand around waiting" for someone to pick you up, drop you off, etc. etc.

I think the car would get you where you need to go more efficiently. What if whomever is picking you up and dropping you off, stops doing it? You lose your 2 jobs and you could fall behind with school. Or, let's say you catch the bus, I'm not sure what part of the country you live in but usually the bus is too inefficient when you have 2-3 "time scheduled" activities that are across town, that you have to complete during the day where you can't be late, etc.

Do you receive the Pell Grant for college? If so, just go to a Community College that is low enough to where the Pell Grant can cover tuition. For the car, what I would do is go to AutoTrader, find an efficient car that's about $2,500 with a solid CarFax. The purpose of the car is just something to get you through 2014 - 2018 with minor repairs, etc. This allows you to get back and forth to your jobs and school, and also allows you to drive up to some sort of recreational place for a break or something every now and then.

The Stafford Loan would be used for it, it's not even due for payments until you graduate and if you get the Subsidized one, there's no interest charged on it while you are in school. When you graduate, you have 6 months to start paying it back. But going on what you said, you make $12k now and can make $22k - $25k after getting the associates, you would have no issues paying back a $2,500 student loan. The current loan rate would be 3.86% and this is how it comes out on a 10 year plan after you graduate:

Loan Balance: $2,500.00
Adjusted Loan Balance: $2,500.00
Loan Interest Rate: 3.86%
Loan Fees: 0.00%
Loan Term: 10 years
Minimum Payment: $25.00
Monthly Loan Payment: $25.15
Number of Payments: 120
Cumulative Payments: $3,017.31
Total Interest Paid: $517.31

That's $25 a month for the loan and the total interest paid comes down further when you sign up for automatic ACH deduction from your bank account for the $25 and when you get to deduct student loan interest payments from your taxes.

Just something to consider. If you have $7,000 saved I would keep that in the bank account and use the small loan to buy the car, so you have something to cover insurance payments, gas, emergency repairs and an emergency fund in general.

 

[Skyline]

Frayzer,

I understand, but in this case with your 2 jobs, how are you getting there currently? I would assume either the bus or you have people dropping you off?

When you add in attending college to get the associates degree, if you have people dropping you off or if you are catching the bus right now, that's three different spots you have to "stand around waiting" for someone to pick you up, drop you off, etc. etc.

I think the car would get you where you need to go more efficiently. What if whomever is picking you up and dropping you off, stops doing it? You lose your 2 jobs and you could fall behind with school. Or, let's say you catch the bus, I'm not sure what part of the country you live in but usually the bus is too inefficient when you have 2-3 "time scheduled" activities that are across town, that you have to complete during the day where you can't be late, etc.

Do you receive the Pell Grant for college? If so, just go to a Community College that is low enough to where the Pell Grant can cover tuition. For the car, what I would do is go to AutoTrader, find an efficient car that's about $2,500 with a solid CarFax. The purpose of the car is just something to get you through 2014 - 2018 with minor repairs, etc. This allows you to get back and forth to your jobs and school, and also allows you to drive up to some sort of recreational place for a break or something every now and then.

The Stafford Loan would be used for it, it's not even due for payments until you graduate and if you get the Subsidized one, there's no interest charged on it while you are in school. When you graduate, you have 6 months to start paying it back. But going on what you said, you make $12k now and can make $22k - $25k after getting the associates, you would have no issues paying back a $2,500 student loan. The current loan rate would be 3.86% and this is how it comes out on a 10 year plan after you graduate:

Loan Balance: $2,500.00
Adjusted Loan Balance: $2,500.00
Loan Interest Rate: 3.86%
Loan Fees: 0.00%
Loan Term: 10 years
Minimum Payment: $25.00
Monthly Loan Payment: $25.15
Number of Payments: 120
Cumulative Payments: $3,017.31
Total Interest Paid: $517.31

That's $25 a month for the loan and the total interest paid comes down further when you sign up for automatic ACH deduction from your bank account for the $25 and when you get to deduct student loan interest payments from your taxes.

Just something to consider. If you have $7,000 saved I would keep that in the bank account and use the small loan to buy the car, so you have something to cover insurance payments, gas, emergency repairs and an emergency fund in general.

I forgot to mention that both my jobs are within 5 minute walking distance, literally right across a street from each other. I'm not attending college right now but plan to in the spring or summer of next year. And your idea sounds pretty good to me... Those numbers seem pretty low and by the time I graduate I should still at least have 1 of those jobs before I jump into a career. I'll definitely keep this in mind!