Legal Question in Credit and Debt Law in Pennsylvania

Re: Owning a car if you owe student loans

You may own a vehicle if you are in default of your loan obligations. However, if you need to borrow money to purchase the vehicle, you may have trouble obtaining credit. At the very least you would not be able to get a preferred rate to purchase the vehicle or be eligible for low rate financing. I suggest you make arrangements to pay back the student loan. If you are unable to make the agreed payments, you may attempt to renegotiate the payment or defer the payments. This is an issue that you must deal with promptly. Good credit is one of the best assets you can have in life. Business loans, credit cards, mortgages to purchase real estate will all be effected by bad credit. If I can be of further assistence let me know. Gerald M. Hershenson Esq. 215-579-9390

Re: Owning a car if you owe student loans

If you are concerned that the car would be at risk if or when you are in default, the concern is a legitimate one. If you simply want to know if you may own property while you owe money, the answer is yes.

I trust this has been helpful, but do not hesitate to call or e-mail with any questions.