Investing with Student Loans

How many of us have student loans? Thousands, tens-of-thousands, millions? Actually, according to, 44.7 million students in the country have some level of student debt! That means that for most of us, we will be paying back our debt for years to come. However, while horrible, lets figure out a way for us to make some money off of these loans! That is a plus right? Here is my secret that, while risky, will allow us to borrow a little more money for a greater chance at making the most of our student loans.

Step 1: Borrow the Money- When I say borrow the money I mean apply for the student loans and take out extra cash to invest with. So, for example, you need a loan of $12,000 for the semester. Get the $12,000, but add on an additional $1,500 to use for your personal use such as metro cards, books, etc. After all is said and done instead of using the remaining amount wastefully open an account with a discount broker such as Fidelity, E*TRADE, or whomever you would like.

Step 2: Open the Account and Start to Invest: So you have the extra money, lets just say $900. You take this $900 and wire it to your account. It is fairly easy to do so if you need help call up one of the representatives and they will gladly help you. Once the money is wired and ready to be invested with the fun begins. If you follow some of the largest tech names in the industry, put money in them. Or if you like green energy invest in energy companies. Whatever you are interested in you can purchase shares of your favorite company through the discount broker.

Step 3: Do Your Research: This may be the most important step. You see, once you have the account set up, you’ve borrowed the money, and the wire transfer goes through, investing in good and solid company’s is the last but most important part of investing. While I provide a few names of stocks on this blog that I find interesting, there are multiple sources that you can use to help you find good stocks such as, Wallstreet Journal, Seeking Alpha and several more!

There is no reason for us as college students to not enjoy our debt. Yes that’s right I said ENJOY IT! If you run out of cash during the semester, like I always do, having several hundred dollars in a backup account always comes in handy. Listen, there is much risk with investing though. You can make a lot and lose a lot all in the blink of an eye. Do your research, invest wisely, and make some money! Thanks for reading!

Leave a Reply