Should I buy a car or save for school?

If you "need" a car to get to school, or to work, then it is no longer an either/or question. Where many people go wrong is distinguishing between "Wants" and "needs." Let's say you "Need" a car: you are commuting to school, there's no public transportation, no carpool, and your parents cannot or will not help you with a car. So, yes, you need a car. However, if you live on campus, you can usually get around okay without a car.

If you do need a car: What exactly do you need? Answer: reliable, and affordable, transportation. Depending on distance, weather, cargo space needed, and traffic patterns, this could be a bicycle, a scooter (these are actually pretty cute!) , a motorcycle, or a car. While you might "want" a sporty looking SUV, that is way out of your budget range. (And don't get an old, inexpensive car - a mechanically sound used car is a good buy, but you don't need a car that is always in the shop!)

Now think about loans. If you save for school, it is not realistic to think you will save enough to pay for all of it. But, suppose you do. Now, you have no way to pay for a vehicle, and no other means of transportation. So, you take out a loan (assuming you have the credit built up that will allow you to get one, or, someone is willing to co-sign for you: another whole issue!) When do repayments start? within the next 30-90 days. What if you save for the vehicle, pay cash for it, and put the remaining of your savings towards school? You can get student loans to pay for the remainder of your education, and there is no obligation to pay them back until after you are no longer in school.

However, truly evaluate whether the vehicle is a want or need. If you don't absolutely need it, and won't need it until after finishing school, by all means, put everything towards school.

Also, I don't know the rules on what student loans can be used for. If they cannot be used for vehicle maintenance, repairs, and operating costs, this is something else to consider! Insurance, gas, etc. Will you be working while attending school? If so, this will provide enough money to maintain a mechanically sound vehicle.

Sorry this creates more questions than it answers, but, decision-making, especially when it comes to finances, is not easy! I hope the issues I raise will help you in analyzing this!