Comments on: Taking Advantage of low interest student-loan Money what to do with it? http://www.student-loan-blues.com/low-interest-student-loans/taking-advantage-of-low-interest-student-loan-money-what-to-do-with-it How Blue Are You? Fri, 30 Jul 2010 06:51:30 +0000 http://wordpress.org/?v=2.5.1 By: Kman http://www.student-loan-blues.com/low-interest-student-loans/taking-advantage-of-low-interest-student-loan-money-what-to-do-with-it#comment-495 Kman Wed, 20 May 2009 08:04:59 +0000 http://www.student-loan-blues.com/low-interest-student-loans/taking-advantage-of-low-interest-student-loan-money-what-to-do-with-it#comment-495 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.<br><b>References : </b><br> 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.
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