Take the money!

A quote from Kauppalehti by Professor of Economics in University of Jyväskylä, Finland ”Threats to expel every single student of economics In Jyväskylä University who doesn’t take out a long term student loan.” ”The Terms of a student loan are so advantageous and economical, with very marginal interest, that you don’t most likely have such a loan in your entire life with such terms and a low interest rate.”

Taking out a student loan is a very simple process, which allows you to get EUR 3600 loan total in an academic year.

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Since  fall 2014, the students who graduate in the expected graduating time, the social insurance institution of Finland, Kela will pay 40% of the amount of loan you have taken out  during your studies.

From the point of view of a student of financing and accounting, that is a huge advantage, which every student should use, especially business students. Therefore, practically if you take out  a total of EUR 10 000  student loan from a bank, KELA will “forget” EUR 4000 of your entire loan, which means you only have EUR 6000 left to pay back to the  bank + (the interest  on the loan which is very marginal). So you have actually EUR 4000 of free money to use wisely.

This should encourage especially every business student to apply for a student loan and invest it to gain profit. For example in long term, low risk open-end unit trust or in publicly traded companies which will pay a decent dividend to shareholders every year. In my case, I have invested the loan into stocks, in several decent companies which decreases the risk of loss.

FatmanonthemoneypileThousands of free euros motivates me and many other students to study effectively, fast and in the expected graduation time. This will also give your University a massive cash bonus from the government when a student graduates in the expected and planned time.

Especially when living as a student in Helsinki, apartment rents are so huge, that you won’t actually manage to live with only having a student grant. Without the student loan, you actually have to work  along studies. The Student loan allows you to have better financial situation, and chance to concentrate in your studies in full power. The extra time you have when you don’t have to work besides studying, you for example can focus on your health, hobbies or social life.

Think about this unique financial opportunity, apply for your student loans, invest the  bucks or use it into yourselves or your healthcare. Especially we, the people who study business should get the idea of this whole thing, and GRAB IT!

Feel free to comment, and share your thoughts!

Sources;
http://www.kauppalehti.fi/uutiset/professori-uhkaa-reputtaa-opintolainan-valttelijat/A4S64HzP
http://www.kela.fi/opintotuki_opintolaina
http://www.kela.fi/opintolainahyvitys
Pictures;
fatmanonapileofmoney
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This entry was posted in Investing, Latest news in Accounting and Finance, Personal finance. Bookmark the permalink.

4 Responses to Take the money!

  1. iiroten says:

    Hope your investments carry out expectedly in da future!

  2. sasupatrik says:

    Good thoughts on interest rates and rents. It is true that in today’s world it is quite impossible to “survive” financially if you do not take the studen loan.

    All in all this was a good post and of a convenient length. And nice pictures by the way.

  3. aripekks says:

    This is really interesting!

  4. minpar says:

    Good points. On the other hand why take loan if you just don’t need it.

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