Subsidized Loans...

Bump for thoughts

>>1438096
You have to sign a contract with federal loans stating you'll only use it for school expenses.

If you come up short you're boned, otherwise you can try.

File: Goldman_price_simulation.png (78KB, 1327x668px)

78KB, 1327x668px

>>1438096
Hey that is really interesting how you set up that picture.

I made something similar without the jumps in it.

>>1438179
Jump-Diffusion model is a mix of the jump model and diffusion model for pricing options. Pretty interesting.

>>1438164
Right, so if I received an outside scholarship that pays directly to me(i'd report it of course), use the loan for school, and the outside scholarship for rent, I could then use the excess of that outside scholarship for whatever with less conceivable repercussions than using the the subsidized loan right? So I could effectively earn the interest on the governments loan. Like a swap with 0 fixed rate. How terrible of an idea is this?

>>1438096

The current student loan rate is 7%.

Good luck getting that out of bonds.

Other investments maybe.

>>1438305
Yeah so my model only has the diffusion process.

What are you studying, mathematics, finance?

And in what language did you create that picture?

>>1438357
no interest while in school for subsidized loans

I'm thinking about doing this myself. I can take out $5.5k of subsidized loans. My tuition is already paid for. I want to flip it fast tho, so I'm thinking of putting it in stocks. Would the govt go after me if I did this?

>>1438421
Stocks could be a little volatile for short term investment. Pus might require a little more attention. That's why I was thinking something dumb like bonds.

I was also considering peer to peer lending or something, idk.

>>1438361
I'm studying Physics/Computational Physics, but most of my electives are computational science, CSE, or Math.

I took that off of a Google search. I just wanted something eye catching.

I gambled my 4.5k subsidized loan on stock options. Lost everything. No regrets. Thank you tax payers.

>>1438466
Very nice.

>>1438365

Well yeah, you beat the interest for a couple years, but then that 7% starts up the moment you graduate or quit school.

>>1438096
Well, I would do something such as...

Use subsidized loans for school expenses. Then use you income from other sources to invest instead of spend on school.

You wouldn't have had to take out loans in the first place, but you did because no interest and your income is put to better use.

At many academic institutions, FAFSA funds are transferred to to the institution before you get your hands on any of it. The institution will firstly allocate the funds towards tuition and fees, and any remainder of the subsidized loan is given back to you (typically a few weeks after the semester even begins). The government doesn't simply right a fat check in the beginning of August and deliver it to your house.

>>1438357
The current student loan rate is 3.7.

>>1438575
Just sell and pay it off before you start paying interest, pocketing (or re-investing) the gains.