Student Debt and 401K Question

[mostlyghostly]

I'm not sure if this is a stupid question or not...

If you are a dental student and you have excess loan money, is it better to return the loan money and reduce overall loan amount...or would it be wise to invest some of it in a 401K? Can you even do that?

Thanks in advance!

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[NITRAS]

You can't invest in a qualified retirement plan unless you have an earned income. Even if you did have an earned income, you aren't an employee and couldn't invest in the school's 403b or 401k. If you had an earned income, you could invest in an IRA. Personally, I think borrowing on any loan, much less a student loan, to invest is stupid.

 

[mostlyghostly]

You can't invest in a qualified retirement plan unless you have an earned income. Even if you did have an earned income, you aren't an employee and couldn't invest in the school's 403b or 401k. If you had an earned income, you could invest in an IRA. Personally, I think borrowing on any loan, much less a student loan, to invest is stupid.

Got it! Thank you!