These days, it is possible for human beings to satisfy every need even if they don’t have money, and this can be done with the help of loans or external finance, which is easily available in the market. Finance is essential at a very primary stage when we consider the life of a student. A student needs money for paying tuition fees, buying books and for transportation. car loans for college student are available for students who find it difficult to buy a car themselves. It is known that a college student needs to travel frequently, from college to home and for other work.

Waiting for public transport can waste a lot of productive time of the student, which otherwise can be used for studying. Car Loans for college students are given on the basis of the credit record of their parents or the cosigner. Every student desires a good car, but sadly there are only few ones who are able to buy their dream car.

Types of student car loans

Student car loans are classified in to two very relevant groups of loans in America:

• Subsidized federal loans

• Unsubsidized federal loans

As the names suggest, the subsidized and unsubsidized federal loans are in direct proportion to the merit of a student. The loans which are subsidized are completely based on the performance and merit of the student. Everything including the financial situation of the student is considered, before the student auto loan is sanctioned. On the other hand, when the subsidized loan is sanctioned, the component of need is not the dominant issue. In addition to this, student car financing is paid to the student directly, or to the student’s parents.

If the loan is of a higher value, then it is paid to the parents of the student, as compared to a loan that is directly paid to the student. Please take note of the fact that though both subsidized and unsubsidized federal loans are assured by the department of education in the US, the interest rates vary subsequently. But, generally the rates for student auto loans are lower than other types of loans.