Quote:
Originally Posted by amarowsky
My older brother is currently going to a university with some pretty hefty student loans. I kinda tossed the idea presented from this Thread to him and he was wondering if a student loan would work the same way as this. Im gonna put out a scenario, Say someone already had loans for their school taken care of, BUT they opened another Student loan for $50k, and you don't have to start paying until your "done with school" (3-6 yrs). Could u keep all of this money in a CD or bond for those years and then just snag the interest and pay back the loan in full as soon as your done with school so you wont pay any interest on the loan? My brother said the loan would be around 8% apr so i wanna konw what u folks think, and if that would work.
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It is very good idea but it doesn't really worth for the 8% interst you are going to pay. If you can get more return like 10% you will still make around 2% difference which is not worth for risk you are taking. It also adds as loan in your credit report which owe for 3 years and need to be paid off as soon geting off school. WHat if things change and you couldn't payoff, it can put your credit in jeopardy. Just a word of caution.