[ Financial Aid ] Open Question : How big of a loan should I take out for school?

So I got my financial aid paperwork for college today and from what I understand I am still going to need to come up with $400 (per quarter), so $1200 total between fall, winter and spring quarters. I'm going to have to take out a loan. The paperwork says I can take up to a $3500 subsidized loan (I don't know exactly what this means) Well I have 2 options when it comes to this: Option 1: Take out only enough loan money to cover the books. Option 2: Take out the whole $3500 loan. Use $1200 of it for books. Use $1000 of it to buy a car (that id use to get back and fourth to school, right now I am going to be driving my parents car.) and then use the remaining $1300 on a laptop, gas, insurance.. Now option 2 sounds ideal BUT as of right now I have no income and no way to pay the loan back. I don't want to get in WAY over my head. Also I don't want to get a car and you know not be able to pay for gas and insurance or have something go wrong with it and have no way to pay for it. Thanks!!