Hi guys, I just completed the first year of University, and I’ve been using funds saved for me by my parents. Thing is, I will eventually run out, and by that time I’ll have to take out loans OR use my money that I’ll be making from summer jobs. For instance, this summer I’ll make around 13k cad after tax, and around 10 of that could go towards school. But…I was thinking about possibly doing something a bit different and wanted to get an opinion on it.
Instead of using my summer money to pay for school directly, I basically want to invest it into low cost index funds or mutuals, aiming for 7 to 10 percent yearly returns. Then, I’ll take out a loan to pay for the rest of my education, and when it comes time I’ll just use the yearly returns on what I’ve invested to pay down the monthly loan repayments. This way, I’ll have my income more freed up to keep investing, as well as a nest egg of around 50 to 56k by the time I graduate.
Is this plausible? Thanks in advance!