Back when I was soliciting questions from you before Thanksgiving, one of the questions I received from a reader concerned the wisdom of taking out student loans to invest. That’s a question that I have gotten two or three times before and never had the time to answer, so I’ll tackle it now.
The short answer is no. The longer answer is: I don’t know who you are borrowing the money from, but most likely, you are signing a contract that has restricted potential uses for the money that you borrow. Most likely, “investing the money” violates the contract. Look, nowadays, everything you do leaves behind a digital trail. If you take out $15,000 and in short order purchase 500 shares of General Electric, it wouldn’t take much of an investigation to figure out what where the loan money went. Things will be much easier for you if you don’t … Read the rest of this article!