Paying Down Student Debt vs. Stock Ownership

[Greg]

Seems like a poor idea if you're banking on stocks returning around 10% per year. It's huge gamble to do this rather than pay down student debt for "guaranteed" returns. The issue also I guess is if people are reading this and decide to do this rather than paying down debt.

http://money.cnn.com/2014/12/11/investi ... =obnetwork

[sophie]

I would never in a million years carry debt at 6% interest in order to fund a stock market investment.  Particularly not debt that can't be discharged in bankruptcy.  There's little difference between that and investing on margin.  CNN really blew it with this one.

[Pointedstick]

I would never in a million years carry debt at 6% interest in order to fund a stock market investment.  Particularly not debt that can't be discharged in bankruptcy.  There's little difference between that and investing on margin.  CNN really blew it with this one.

Yeah, that's nuts. Student loan debt is toxic stuff that you want to eliminate using drastic measures, including paying it down as fast as possible, joining the military, teaching in a horrendous inner-city school, or fleeing the country.

[MachineGhost]

Yeah, that's nuts. Student loan debt is toxic stuff that you want to eliminate using drastic measures, including paying it down as fast as possible, joining the military, teaching in a horrendous inner-city school, or fleeing the country.

Can't wait until LC gets into the student loan bidnezz!  I'mma hungry shark!

There is an interesting -- but elitist-- and disruptive student lending model already, but you have to be an "accredited" investor to participate: https://www.sofi.com/

I hope this stuff becomes more democratic over time.  The last thing we need is an even bigger gap between these spoiled [middle-] upper class children and the rest of society.  But hey, someone has to got run the companies behind the stock we invest in.

[Tyler]

Seems like a poor idea if you're banking on stocks returning around 10% per year. It's huge gamble to do this rather than pay down student debt for "guaranteed" returns. The issue also I guess is if people are reading this and decide to do this rather than paying down debt.

http://money.cnn.com/2014/12/11/investi ... =obnetwork

When you talk to a kid who started investing in 2009, this article is a classic example of selection bias and youthful naivete.  It's horrible advice in general, and a good sign we're due for a market correction.  I wonder if they'll follow up with him afterwards. 

the pensions of grammar, middle, and high school teachers should be invested in student loans to collage students (their students) if they teach them well, and create well educated critical thinkers, the investment will get payed back with good interest... if they don't ...its their own fault they went broke...