Investing a Student Loan

Middlers

I am thinking of taking the offered student loan and investing it in a high interest account to make some money. There must be others out there that have done the same or similar. What are the pitfalls and where are the best investments to be found?

Sillychuckie

I have done the same.
Pitfall = temptation to spend it.
Otherwise, its a perfectly good idea to get the max loan, even if you don't need any of it.
Check MSE articles for best savings accounts (ICICI currently).
I'd advise you to start filling up your ISA's if you haven't already.

Also, pay the loan off as slowly as possible (from earnings, over years), and provided you don't touch the investment stuff, you'll always be earning on it.

pavlovs_dog

im also doing the same.

hardest thing i have found so far is when the statement comes at the end of the year, telling you how much you owe the student loans company :eek:

i just keep reminding myself that its an almost negligable interest rate and its a great deposit for the house i wouldnt otherwise be able to afford this side of 50 :eek: