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Investing.


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Don't borrow to invest.....

What if your loan payments become due and the market gets cut in half (again...)

 

Couldn't have said it better. Even if you get moderate returns of 6% and your loan interest is 3%, therefore your only gaining 3%, and... someone correct me if I'm wrong but isn't the historical rate of inflation 2-3%? So your not even making any money on your 'investment'. Add to that the risk of investing at all and losing everything then still being stuck with a bill.

 

People only take student loans because they have to, your lucky you don't HAVE to.

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Even if you get moderate returns of 6% and your loan interest is 3%, therefore your only gaining 3%, and... someone correct me if I'm wrong but isn't the historical rate of inflation 2-3%? So your not even making any money on your 'investment'. Add to that the risk of investing at all and losing everything then still being stuck with a bill.

 

Very true, and that isn't even taking into account the taxes you pay on any capital gains with no deductions for the interest paid on the loans and your own time to do all the paperwork and research the investments.

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Be careful what you do with special education-based loans. Not sure what the specifics are with the gi bill. When my roommate in med school (he was on a full ride-lol) went to take out full stafford subsidized loans (over $100k at 2.2 percent), the school got wind of this and told him he could be charged with some sort of fraud if he tried to borrow govt money to invest, which is exactly what his plans were. At least half of this money was completely subsidized (the govt pays the interest for up to 8 years)
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