interest free grad loan- take and invest?

tr105

Hi,

I have a graduate job, on a fairly good salary which leaves me with take home around £1700 per month.

I am saving for a deposit on a house.

I have the option to take an interest free graduate loan of upto £7000 repayable over 48 months, or sooner if I like.

Would it be worth taking it and investing it over a four year period? I am planning to save around £800 per month regardless- I will reduce the amount I save in this account to offset the monthly repayment on the loan.

Is this worth doing? I have no other debts.

Thanks.

CLAPTON

if it's genuinely interest free why wouldn't you simply take it and save it elsewhere ...... at 5% you will make a useful £700 in interest over the period