Students should take student loan!

To all Uni students to be out there, even if you can afford your education in the universities, do take the student loan! Its interest free!

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?