My financial planner advised me to take out as many subsidized student loans as the government would give me and to invest them in medium, or if I am uneasy about it, low-risk investments. Is this advisable?
2006-11-01 02:54:30 · 6 answers · asked by harvardbeans 4 in Business & Finance ➔ Personal Finance
I should add that he also suggested fixed investments.
So, using $ from student loans for anything besides school is fraud? If so, this is a big no-no.
2006-11-01 03:03:17 · update #1
I say go for it. I did when I was at school. I had excess student loan money after all my tuition had been paid. Made an excellent return on investment. as to the poster who says you should never borrow to invest...that is just madness...EVERY business borrows to invest (when a company issues bonds there are borrowing money from investors at a lower interest rate and investing it at a higher interest rate)and even the government does it i.e. Treasury bills are used to fund government expenditure. as a word of caution though don't invest in stocks. the stock market is not predictable. you are better off with a CD/Treasury bill or a municipal bond
2006-11-01 06:08:41 · answer #1 · answered by gobuckeyes 1 · 0⤊ 0⤋
I think you need a new financial planner. This sounds like a horrifically bad idea. Right now the world is pretty unstable, to borrow money and then an unforseen event to crash the market would devistate you.
I know there is only a small chance of it, but still.
The guy 3 below me is totally off base about businesses and government. When they "invest" against bonds they are doing so in the same manner you would be investing in yourself by going to school. By using it to expand and better yourself, increasing your potential. Not in something like a stock or mutual fund or any other "investment".
2006-11-01 02:56:41 · answer #2 · answered by David W 3 · 0⤊ 0⤋
If you can borrow money for free and invest it to earn interest, great!
However, if you take out money for a student loan and don't use it to pay for school, you may be looking at some fraud issues.
2006-11-01 02:58:46 · answer #3 · answered by trigam41 4 · 0⤊ 0⤋
Bad advise. I don't think this guy is a financial planner and is a bad one if he is. Never borrow money to invest. Invest only money that is yours and you want to earn interest on.
2006-11-01 03:05:59 · answer #4 · answered by newtexan 2 · 0⤊ 0⤋
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2016-10-21 02:16:36 · answer #5 · answered by ? 4 · 0⤊ 0⤋
I have friends that did this since they did not need they money to pay for college. It's no risk. You pay it back after you graduate.
2006-11-02 06:54:31 · answer #6 · answered by Steve R 6 · 0⤊ 0⤋