<p>I am an incoming college freshman looking at some pretty steep college costs for this coming year, and I was looking for someone to help me figure out what to do with my current cash reserves. My thinking was that out of my $8500 in the bank right now, I would invest $7000 the first year, and leave the rest for books and other expenses. </p>
<p>Question is, with the interest rate on loans, is it going to be better to simply reduce the amount of unsubsidized loans or should I go with a 4 year Mutual Fund (I heard good things about an index fund). I am looking to have the most money 4 years from now to make a good part of my loans disappear. </p>
<p>Thanks. I also want to attend grad school, so perhaps I would want a 7-8 year fund instead. Just looking for any advice possible.</p>
<p>The situation for loans will change dramatically on July 01, 2005 from the previous 4 years. </p>
<p>As for investments, unless you are an age of majority in your state, you cannot start an individual MF. Consult a professional for exact particuliars and ALL alternatives.</p>
<p>I think you are asking can you get a rate of return on your remaining monies that meet exceed you the cost of your loans? Short answer- yes. Qualifiers- will be tougher than in past, with a high degree of risk and good chance of failure.</p>
<p>I think you are asking, can you get a rate of return on your remaining monies that meet or exceed the cost of your loans? Short answer- yes. Qualifiers- will be tougher than in past, with a high degree of risk and good chance of failure.</p>