Here is how it works..assuming you can fully afford the fees.
Here is also some basic assumption :
- Annual school fees of around $6360 ( starting from engineering students going into NTU in Aug09 after tution grant and stuff )
- Bank Loan of up to max 90%
- Fixed Deposit Rates of 1% ( Its really low now i know..)
So in this case, you should take the interest free bank loan of
90% X $6360 = $5724 / year.
Asuming you put the 4 years for fees as a lump sum FD. You will get back
(5724 x 4 ) x (1.01)^4 = $23825.67
Which essentially earns you $23825.67 - ( $5724 x ) = $929.67 after 4 years.
* I simplified the 'true earning' by not taking into consideration that,
If you had not taken the loan and put what ever ' education $$' you have into an FD, only taking out when its time to pay the school fees.
But, anyway ..$929.67 is not bad rite?