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Lester Said:

Taking out a student loan in the fall -- will it cover what I owe on my car loan?

We Answered:

Whether the student loan will cover these amounts will depend on the cost of attendance at your school and what your school's actual cost is. As a dependent student, you are able to borrow up to $5500/freshman year, $6500 sophomore year, and $7500/junior and senior years (if you're an independent student the amount increases by 4000/year). However, you cannot borrow more than your school's cost of attendance (so it depends on how much your school grants for living expenses). For instance, your school's COA is $7,500/semester, but it actually only costs you $3,500/semester to attend (tuition, books, fees, etc) + you have $2000 in grant money a semester. You will only need $1500 more in loans to cover tuition costs. You are eligible to borrow up to $2750 (if you're a dependent freshman)/semester... which means that you would receive a refund of $1250 that semester. Will that be enough to pay off your car, insurance, cell phone, etc... it's not likely. Yes, a student loan can cover the cost of what you still owe on your car, but it will depend on the size of the refund you receive. No, it will not be detrimental to your credit school, unless you then default on your student loan in the future (Remember, car loans can be discharged in bankruptcy... student loans won't be).

Charles Said:

I'm financing a vehicle, will the finance loan cover car insurance costs too?

We Answered:

Most finance companies will provide insurance for you, but check the prices, its usually much more expensive than your own insurance.

Kelly Said:

how can an insurance cover a loan?

We Answered:

There is single interest insurance to cover loan principal, usually taken against the owner or officers of the corporation. Not as comprehensive as the consumer credit insurance out there, it does manage to defray some risk. Key man life insurance and solid coverage for lost and employee dishonesty are the other risk mitigators for loans.

Joy Said:

Will Gap Insurance Cover the remainder of my loan.?

We Answered:

The insurance company will pay you $X, the value of the car. If $X is less than $1500 the Gap insurance will pay you the difference between $1500 and $X so you can pay off the loan. If $X is greater than $1500 the Gap insurance will not pay anything. You'll need to use part of $X to pay of the loan and the rest for a down payment on another car.

Edith Said:

Does gap insurance cover if i had refinance the car loan??

We Answered:

it should if you purchased through the dealership when you bought the car. gap is usually financed through a completely different agency than your actual auto finance. you can contact your finance company to make sure.

Carole Said:

What life Insurance do i need to cover loan payments if I am out of work?

We Answered:

lifeinsurance.awardspace.info - try this one. I have their insurance and, as remember, they can provide such a service.