How to make money off a student loan
Full time studens able to borrow up to $150 per week for living costs
Soon to be $155
Under the interest free system only pay back what you borrow
Subject to student staying in country
Student can decide what to do with money -- spend or save
If student able to save, then can invest and earn interest
We did some calculations
Rabo online call account at 8.3%
We subtracted tax paid on interest earned
If received for 37 weeks a year, this year, $136 -- not much
BA Over 3 years - $1,659
Longer degree -- dentistry or perhaps Masters
5 years - $4,909
7 years - $51,047 total
$39,995 to be repaid
= $11,052 earned in interest
This is if the maximum amount for living costs borrowed and invested for 37 weeks a year for 7 years
Even if spending some, invest the rest
A student needing $50 a week can invest the other $100 that is available
Will change to $105
After 3 years - $1,115
5 years - $3,311
7 years -- $7,459
Incentive to borrow the maximum and invest that not spent
Not changed by National -- those studying
The interest earned would perhaps pay off a student's over draft
And $11,000 would certainly be helpful after paying 7 years of tuition fees.
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