Phil asked in Business & FinanceInvesting · 1 decade ago

Profiting from student loan?

There are many student loans that offer 6 month 0% interest rates, what is there to stop me from taking out one of these loans, investing it into a high-rate savings account and pocketing the difference?

I believe the term is 'stoozing', any ideas?

Thanks!

4 Answers

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  • 1 decade ago
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    Don't you have to be in school, first? Also, fees are attached to those loans, such as origination fees, which will eat away at any profit you will supposedly earn. Also, most charge a penalty for paying early.

    You are not likely to get a free ride, but I'd be interested in seeing which school loans you are referring to. Most likely, you haven't read the fine print.

  • 1 decade ago

    If you can find a high rate savings account let me know. The only student loans that I know about the funds are sent directly to the school and the check is made out to the school. If you are not enrolled or if you drop out you would need to pay off the loan right away.

  • Anonymous
    1 decade ago

    if you think you can get high rate savings acc go for it..lt is 2010 not 1979

  • Anonymous
    1 decade ago

    What would stop you? How about morals and a conscience?

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