Student loans?
Asked by lizzybizzyboneSchools offer student loans to those who need hlep with schooling.. Well I get some finacial aid and the rest i have to pay with student loans... Then you get the six percetn interest rate and dont have to payt until six months after you graduate. So where after you graduate and want to get a loan will you find this low intrest rate? NO WHERE. So is it a good idea to just get the max student loan available now and just save it for future use... Or no
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Answered by Aron K
As someone who once used your logic to justify borrowing lots of money, and is now paying it off, let me say don't do this. This is a bad idea for the following reasons: 1) If the government/lender is charging 6.8%, and you have the money in an online, high-yield savings account earning 5%, you're still loosing money. 2) You won't save the money. No one would. It would be spent on this little thing, or that "emergency" or something else. 3) You're adding risk without any reward. The risks are that you accidentally forget a payment, that you spend the money, that you don't have a job when repayment comes, etc. If you're going to take those kind of risks you should be making money for your effort. There are 0% interest loans. They're when you pay for something with cash. There are negative interest loans. They're when you save up money in a savings account.
As someone who once used your logic to justify borrowing lots of money, and is now paying it off, let me say don't do this. This is a bad idea for the following reasons: 1) If the government/lender is charging 6.8%, and you have the money in an online, high-yield savings account earning 5%, you're still loosing money. 2) You won't save the money. No one would. It would be spent on this little thing, or that "emergency" or something else. 3) You're adding risk without any reward. The risks are that you accidentally forget a payment, that you spend the money, that you don't have a job when repayment comes, etc. If you're going to take those kind of risks you should be making money for your effort. There are 0% interest loans. They're when you pay for something with cash. There are negative interest loans. They're when you save up money in a savings account.
