my friend at uni today, said he was thinking about MAXING out his student loan, living costs, fees, everything. and depositing it all into a bank (anz) on a term deposit. the interest earned at the end of the term, will be reinvested, until he finishes university. at the end of uni, he will then pay it ALL back to his loan (the funds in the bank)
for example, deposit $5,000 get interest around $200. pay back $5200 on loan, therefore that $200 extra is beneficial since loans are interest free.
personally i think it is a stupid idea, as it would only take a few days at a part time job, to earn the amount of interest he gains in a year.
just after your responses....would you max out your student loan and invest it into a bank for 12 months?
hopefully this clears up our never ending debate :S