Investing Adventures

As most of you know, I’m a graduate student in here in Florida since 2000.  My financial background is about as average as you can get.  My parents are considered middle class, and as a result, financial aid isn’t as readily available.  In my opinion, students from financial backgrounds similar to mine are the ones that are hit the hardest.  We’re forced to find creative ways to fund our schooling while absorbing large amounts of debt.  Folks higher in the financial food chain normally can afford the skyrocketing prices of college (although it’s becoming much harder for them as well).  Those lower on the financial chain have a variety of programs available to them, some being addition federal help, grants, scholarships based on financial need, etc.

Before you say anything, this isn’t a rant against the education system and the government.  I believe the government should do more for the middle class, but historically that’s not been the case.  In any event, and even more so for students in my position, you should be looking forward to taking risks, financially, while in school.  But how can some of us take risks when we’re barely able to survive?

That’s the key.  I’m sure some of you are tired of living off the typical college staples (ramen, pizza, cheap beer).  So what can you do about it?   I’m currently taking loans from the federal government, some of which are subsidized interest wise, while others aren’t.  What does this mean?  It means that while I’m at school, about half of all loans I take out from the federal government are effectively interest free.  Subsidized loans are just that – the government pays the interest while you’re in school.  So take advantage.  Am I advocating going into debt while in school?  Yes!  What reason do you have, while in school, to not take advantage of interest free money and explore any ideas you may have?  I know, most students like to go out and party and all that jazz.  But for those that are focused on the future right now, why not take $2,000 or $5,000 or even $10,000 and learn the markets?  Or take ownership in a business?  Or even start your own?

I know what you’re thinking.  It’s a loan.  You will have to pay it back once you’re out of the system.  But honestly, when you’re pushing $50k, $75k, or in my case close to $100k, what’s another $5-10k?  Who’s to say you can’t turn that $5-10k into $10-20k while you’re finishing up your degree?  Sure, you could lose it all, but what’s another $5-10k when most adults are taking anywhere from 10 to 30 years paying off their student loans. 

Or if you prefer, you could always take that $5-10k and stick it in a CD or Bond.  Your ROI might be enough to help cover rising costs due to current inflation rates.  Or perhaps you could take your friends out for a round of drinks.