investing with loans

[obiwan]

anybody out there who take out loans and put in savings or CDs or mutual funds etc. what are your recommendations

---

Members don't see this ad.

 

[sirus_virus]

I am not sure it is legal to do that.

 

[QuantumMechanic]

I am not sure it is legal to do that.

As long as you pay back the loan, you could go to Vegas and bet your tuition on black and be $$$$RICH$$$$$

 

[rup47]

I put mine in a ING account, earning 4.5 % interest. Every month I have a budgeted amount automatically transferred to my checking so I can pay bills, rent, etc. Its not illegal to put your loans into a savings account. After your tuition and bills are paid, you get a refund check from the school. That money is yours to do with what you want.

 

[jonb12997]

After your tuition and bills are paid, you get a refund check from the school. That money is yours to do with what you want.

That fact needs to be a sticky or something... I don't know how many times people have asked a similar question and gotten this answer, well said!

As far as investing. Unless you're doing what rup does, and just using it to live off of (which is what we all should do since most of us only get 2 "paychecks" a year), I think this is a pretty obvious statement, but I'd make sure that the amount you're getting in interest, if you're going to invest long term, is higher than the amount you're paying in interest on your loans.

 

[sendwich]

I put mine in a ING account, earning 4.5 % interest. Every month I have a budgeted amount automatically transferred to my checking so I can pay bills, rent, etc. Its not illegal to put your loans into a savings account. After your tuition and bills are paid, you get a refund check from the school. That money is yours to do with what you want.

about how much do you get back from the ING account? i was thinking about doing that, but not sure if it's worth the hassle.

 

[rup47]

about how much do you get back from the ING account? i was thinking about doing that, but not sure if it's worth the hassle.

eh, not too much compared to how much we are taking out. But I think after the year is up i'll end up with about $350 earned in interest. I think the biggest reason I put it in an account like ING is it helped me budget my money between refund checks. By transfering the money once a month its sort of like getting a paycheck once a month that I use to live off, that way I dont spend it all in the beginning and have to live off of crackers and water come the end of the semester.

 

[sendwich]

eh, not too much compared to how much we are taking out. But I think after the year is up i'll end up with about $350 earned in interest. I think the biggest reason I put it in an account like ING is it helped me budget my money between refund checks. By transfering the money once a month its sort of like getting a paycheck once a month that I use to live off, that way I dont spend it all in the beginning and have to live off of crackers and water come the end of the semester.

cool, i like the idea of getting a monthly paycheck. btw, do you have to pay taxes on the interest earned?

 

[sirus_virus]

cool, i like the idea of getting a monthly paycheck. btw, do you have to pay taxes on the interest earned?

Yes.

 

[njbmd]

Moving to Financial Aid Forum for comment there.