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[thirtythree]

 

[hdeck]

if you were completely honest when filling out the fafsa application with everyone's ability to contribute then there is no reason that it would be wrong to take out the loan.

 

[j00fek]

Originally posted by: hdeck
if you were completely honest when filling out the fafsa application with everyone's ability to contribute then there is no reason that it would be wrong to take out the loan.

cant hate on that response

 

[dullard]

If you read the fine print and if you read between the lines, then yes it is wrong. Several places over the years have stated that you are not to use student loans for anything other than school purposes. I've seen it on the forms you sign, on handbooks for student loans, and even on income tax forms. I can't say exactly where (or if) it is printed on this year's forms because I haven't looked.

That said, no one will ever know or ask you about it. Thus, you are perfectly fine.

I'll leave the decision on ethics up to you. Is it ethical to temporarilly use taxpayer funds earmarked for other students who are in need for your own profit?

 

[Riverhound777]

Originally posted by: dullard
If you read the fine print and if you read between the lines, then yes it is wrong. Several places over the years have stated that you are not to use student loans for anything other than school purposes. I've seen it on the forms you sign, on handbooks for student loans, and even on income tax forms. I can't say exactly where (or if) it is printed on this year's forms because I haven't looked.

That said, no one will ever know or ask you about it. Thus, you are perfectly fine.

I'll leave the decision on ethics up to you. Is it ethical to temporarilly use taxpayer funds earmarked for students in need for your own profit?

Well he wouldn't be using it for other things, he could use the loan to pay for his school, books, ect, and then not have to use his own money, so he could use that for the IRA.

Or just stick that extra money into a money market account or mutual fund and earn interest. Then when the time comes to start paying off the loan, pay it all off and keep the money you made.

Edit: Just dont put it into risky stocks or something and lose it all. That would be pretty dumb.

 

[maddogchen]

wait.....so you can take out a giant school loan....and put it in a savings account and get 5% interest for 4 years....:Q