Taking Advantage of low interest student-loan Money what to do with it?
So my parents are providing my tution and cost for college, but with great student loan offers im looking at taking a student loan with an interest rate plus or minus 2.5% which is really good, what could i do with this money investment wise to try to make some money such as cd’s and etc
yea thanks kman i realized that just seeing if the oppurtunity arises itself with obama possibly creating more loan oppurtunities and i know that the u NEVER buy stocks with loaned money
AFAIK federal student loans with rates under the inflation rate have to be used towards education costs, and I’d be a bit surprised if you even qualify for them given that your parents are capable of paying for your education.
Investing borrowed money is rather risky. If you’re sticking to risk-free CD’s and the like, you’re looking at a 3.5% ish return (max)… you’re not going to be making much more than your borrowing cost. Stocks obviously have better potential, but it’s pretty high risk as a somewhat short term investment in this climate.
