loans you don't need

College Life
1

<p>So by saving money on the dining plan and having a lucrative job, and by having a low EFC, I've effectively eliminated most of my need for loans. They gave me 7.5 to 8k in loans (6.5k subsidised), and I'll only need max 0.8k.</p>

<p>So just counting the subsidised loans, after paying my bill I could have 5.7k to invest.</p>

<p>My roommate (who happens to be in the Comm school) is telling to invest in Citigroup, saying their stock will rebound dramatically by the time I graduate, meaning I could pay off my loans with a profit AND have the loans count towards my loan cap. Good idea? Bad idea?</p>

2

<p>I personally would never use loan money to invest. I also wouldn’t trust the financial advice of my roommate…</p>

<p>I’d just save it for tuition next year or pay it back immediately.</p>

3

<p>Take it and put it somewhere with nearly no risk. You don’t know what your financial aid or job situation is going to be next year.</p>

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<p>^^ Spot on, put it in a short term CD or money market account, something that’s FDIC insured. You don’t want to take ANY risks with student loan money.</p>

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Not even if he’s an excellent student from one of the nation’s top business schools?</p>

<p>I don’t know what my tuition is though …</p>

<p>Umm… if I take a loan, apply it to my loan cap and then repay it back … would that be sort of “cheating”</p>

6

<p>LOL We’re in a recession and your thinking of investing money </p>

<p>OH GOD</p>

7

<p>“Not even if he’s an excellent student from one of the nation’s top business schools?”</p>

<p>I wouldn’t trust a business majors advice on anything, much less investing.</p>

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<p>It’s a perfectly good time. I have a job. I have access to capital, and I’m pretty sure that a lot of stocks will see much higher prices by the time I graduate. Any ideas of reasonably not-so-risky stocks to invest in? </p>

<p>If not I could use the capital to start a little business?</p>

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<p>In the long-run recessions are probably the BEST time to invest money, ceteris paribus.</p>

10

<p>“I wouldn’t trust a business majors advice on anything, much less investing.”</p>

<p>Exactly. He is a student. Emphasis on STUDENT. </p>

<p>I think the business idea is kinda not realistic. Running a brand new business while in school and working? Come on.</p>

<p>You should be asking like a professor or someone who specializes in the stock market these questions and not college kids online. : )</p>

11

<p>Well it would be a small scale business. I’m particularly good at cooking and I know people who would buy from me …</p>

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<p>Stock market = risk. That is true no matter what stock you invest your money in. Some more than others, but there is the possibility of losing all of your money.</p>

<p>Never, ever use loans to invest in the stock market.</p>