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    ann421's Avatar
    ann421 Posts: 8, Reputation: 1
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    #1

    Aug 5, 2008, 08:44 AM
    Where to invest and how to get interest to pay for loans
    I am a 21 year old college student that hopes to attend Medical School. I also am about to get a settlement from an accident I was in. I want to know is there a way that I can invest my money and get the interest to pay for my medical school loans? Where should I invest and how much minimum is accepted?
    ISneezeFunny's Avatar
    ISneezeFunny Posts: 4,175, Reputation: 821
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    #2

    Aug 5, 2008, 08:50 AM
    Well. The avg med student comes out with about $120k in loans. No interest will be that much unless you have something close to a $4 mil settlement.

    You could invest in stocks... mutual funds... CDs...

    If you have some knowledge about the market, the stock market isn't a bad way to go. However, if not, then a long term CD may be in your best interest. Banks vary on their minimums... and rates vary as well. I know that bank of america is currently offering their CDs at 3.3% yield.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Aug 5, 2008, 08:53 AM
    How much will the settlement be? Conservatively you can expect to get a 4-8% return on your money per year. Since you will be a student with little or no other income, you don't have much to worry about for taxes.
    ISneezeFunny's Avatar
    ISneezeFunny Posts: 4,175, Reputation: 821
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    #4

    Aug 5, 2008, 08:54 AM
    Scottgem:

    Where can I get 4 - 8% return?
    ann421's Avatar
    ann421 Posts: 8, Reputation: 1
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    #5

    Aug 5, 2008, 09:00 AM
    ScottGem: I will be getting about $150,000. I want to give my father $106, 000 to pay off the mortgage and the rest I would like to invest. I just do not know where? Or, should I just use it all for my medical school and not have to worry about loan interest?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #6

    Aug 5, 2008, 09:01 AM
    Quote Originally Posted by ISneezeFunny
    where can I get 4 - 8% return?
    Municipal bonds, Some CDs, REITs maybe. Got to shop around.
    wingrun's Avatar
    wingrun Posts: 40, Reputation: 4
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    #7

    Aug 6, 2008, 12:59 PM
    I'm going to offer a bit different strategy from previous mentioned but the reason why it wasn't mentioned by others is due to the risk. My suggestion would be picking a stock with a high dividend yield. Assuming your school attendance would be 3 years or so, you can probably earn an average 5% return by dividends yearly and another 10% or more by the time you sell your position. The only problem in this case is risk and future forecast but that could be planned by someone with the right experience.

    If your loan has no interest payment until graduation date, then you should invest your savings to help pay for the tuition costs.
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