I recently came across an interesting thread on a forum concerning the usage of student loans. These people had basically invented a fairly brilliant, if somewhat ethically-grey strategy for maximizing returns when they used a student loan to invest. These individuals (they obviously posted anonymously) were the product of “old money” and they were law students. They obviously thought about money and how to use it to their advantage, much differently than the majority of people. Their parents had retired from their main job before their kids went to school (not as uncommon as one might think given that affluent people tend to have children later in life, and retire much earlier), and consequently had to report little income on their student loan applications. In cases where their parents still earned a wage these future lawyers had waited until they were 21 and consequently considered independent entities as far as student loan programs were concerned. These circumstances allowed them to apply for and collect student loans when they really didn’t need the money. After all, they didn’t work while going to school because their parents paid for everything, so they had no income to report on their loan applications either. So with this fortunate combination they were able to receive large amounts of student loan money from both the provincial and federal governments. In addition to the loan amount, these people even got automatic grants because they were considered to be among the most “in-need.”
Interest-Free Investment Loan Anyone?
Now many people in their position would have taken the money and had a great time. Who couldn’t use a few thousand dollars worth of beer money in college right? Or possibly one could see themselves buying a nice vehicle of some kind with the money in order to really show off for the ladies/men on campus. Instead, what they did was invest the money. Their foolproof theory was that they would simply invest the money, which consisted of an interest-free loan and a non-repayable grant (essentially free money), and then pay the loan back when it came due a few months after they graduated.
Using A Student Loan To Invest – How To Maximize The Strategy
I’m not saying what they did is right from an ethical perspective, but from a purely financial point of view, this was a great idea. If the students wanted to be cautious, they could invest in GICs and bonds and earn a free 3% or so on the money for the years they were in school before paying it off when it came due; however, I of course would advocate for a different approach. With the markets in a fairly deep correction, I think there are substantial gains to be made over the next couple of decades in equities. I have published articles before on the stock market average returns over the years, and I believe they make a pretty convincing case that business will rebound as it always does after it shakes off the inefficiencies (ok, so this is a lot of shaking over the next couple of years, but still). To get some free money from the government, plus an interest-free loan for a period of years, represents a pretty substantial opportunity to create a little wealth at the beginning of someone’s life. In many cases, it wouldn’t even make sense to pay off the student loans when they came due and started charging interest as well as requiring payments. This is because the loans are usually given at a fairly low interest rate, and the money paid on student loan interest is tax deductible in Canada. This means that your real return on paying the loans back probably would not be as good as investing your money at the moment.
Probability of Being Caught?
I know there are many out there that think this cannot be done, but the more I look at it, the more positive I am that it actually can be. People claim that the government could see the investment activity, but this is easily avoidable if you get another person to invest it for you after gifting them the money. For every possible way you could get caught I’m fairly certain there is a straight-forward way to beat it. Even if there was a theoretical way to catch these savvy loophole-types, the student loan program is so massive that the odds of them getting caught are very low to begin with.
Using A Loan To Invest – Is It Moral?
So if we have determined that the strategy is undeniably effective from a purely money-grabbing standpoint, what message do we get from the “angel” on the other shoulder? Obviously these guys represent the epitome of taking advantage of the system being that they are already wealthy, but what about if a “regular” person used this strategy after they turned 21? Maybe by scrimping, saving, and working some hours (maybe some “cash” jobs) a person could get by and still have money left from their student loan (especially after they turned 21). Would it still be unethical for them to use this investing strategy? The almost-lawyers caught a lot of flack on the site for taking money that could have been better put into the hands of truly needy students, but they actually had a fairly persuasive argument for themselves (who would have guessed). They argued that they and their parents would be in the top pay bracket the majority of their lives and would never take advantage of all the other welfare programs out there for unemployment etc. This would be one of the only times they would be able to get the same “free money” everyone else decided they were entitled to, and really, wasn’t it just a small percentage of their parents’ money coming back to them anyway? Needless to say, these guys are going to be very good at their jobs one day.
Is Buying Luxuries More Permissible Than Buying Stocks?
Is it wrong to use a student loan to invest money for personal gain? I think if you’re going to decisively say that it is, you almost have to claim equally decisively that using student loan money for any luxury should not be allowed. For every student that goes out to eat, buys a round of beers, or a gets a car, there is probably a student out there who could use the money more than them. I’m not sure where I stand. I think it is definitely a misuse of the program, and that it certainly is throwing tax payers money away. On the other hand, I see so many ways that the government to undeserving people, I almost applaud these people in bizzaro-libertarian-Robin Hood-type of way. Instead of robbing from the rich to feed the poor, this strategy takes back money from the government who basically stole it at gun point and use it so inefficiently. At the end of the day I guess I would say that it is not right, but it shows how upset I am with wastes of big government that I would even consider these people to be anything less than dishonest individuals.
Is there a real difference between these forum boasters who are already come from wealthy backgrounds investing student loans, and blue-collar students using a student loan to invest if they have saved their money in various ways? If given the opportunity to enact this guaranteed strategy, would you?