this does not relate to me but my significant other:

My GF currently wants to go back to school and do her nursing. She also wants to get an apartment but with her current budget, things would be tremendously tight. She would be doing clinicals during the day, cutting into her time at work.

Her current car payment is around $430 and $138 insurance bill (she got in wreck). The car is a really nice 2008 Nissan Sentra with 12k miles on it. She currently owes about $10,500 on it.

I don't know much about refinancing and loans, so thus why i am posting. I suggested that she sell the car (blue book is about 12,300), take the cash, pay off her loan, then get a new auto loan for about 2,000 or 3,000. Buy a honda civic or toyota to drive for 2 years while she works on her nursing. That would get her car payment down to 100-200 a month over 2 or 3 years and insurance down.

Suggestions?

2/26/2009 8:23:09 AM

tell her to sell the car, and save some money, then get a $2-3K honda/toyota paying cash. That'll save her considerably on insurance.

2/26/2009 8:37:36 AM

Will she be getting any financial aid or be eligible for student loans? Is she getting this apartment by herself, or sharing it with someone?

Refinancing might be an option. Depending on how long ago she got her loan the rates may have dropped.

I would also look at other areas that she could cut back on. Maybe getting an apartment close to the campus to save on gas.

It's only for 2 years right? I probably woudn't sell the car unless it was really necessary.

2/26/2009 8:39:45 AM

She already has a student loan (10k) and is already in a repayment phase. I think she can defer the payment and get another one. Not sure if she wants to or not.

Roommate.

2 years max. Depending on the RN/LPN path. Not sure which one she is going with.

2/26/2009 8:43:00 AM

you can defer the loan if you're in school.

2/26/2009 8:46:29 AM

if she has a nice 2008 she would take a huge hit in my opinion getting rid of it so early. its way too new to get rid of in my opinion regardless if the trade would cover her current loan.

you mentioned a refi, but we dont know her current loan terms/rate?

can she get cheaper insurance?

if she can buy a place I cant think of a better time to do so.. low ball the heck out of your initial offer though and see what they come back with.

2/26/2009 12:30:40 PM

^yeah, just what we need...another person that can afford a house trying to buy one....

2/26/2009 10:31:43 PM

430 a month for a sentra. ouch

2/26/2009 11:53:35 PM

Quote :

"430 a month for a sentra. ouch "

good god yeah

sounds like someone has bad credit.

2/27/2009 12:30:04 AM

it's not that bad if it's a 36-month loan, 430 x 36 = $15K interest included.

2/27/2009 12:40:27 AM