Hi /biz/, Hope you guys can advise me on this situation. I

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Hi /biz/,

Hope you guys can advise me on this situation.

I am currently a 22 year old enrolling into one of the universities in Singapore. I have taken up a 100% loan to fund for my university studies. I'll be in debt of 40k~ upon graduation, which is a huge sum of money to pay off.

At such, I have looked around for some form of plan to lessen the debt I'll have to pay once I graduate, or in the ideal case I would have forked up 40k to pay off, which seems impossible.

I have looked at several Unit Trusts in Singapore and was thinking whether is it possible to pay off the debts solely using the money that I will put into the fund. Currently, I am able to cough up about 7-8k a year (without draining my savings) for 4 years. Assuming the returns are at a flat rate of 5%, I should be able to pay off the debt by 2021.

Now that is the ideal scenario in my head and I have no idea how feasible this is. I don't come from a business background so all knowledge about this is basically from the net.

Option B, which is to dump whatever spare cash I have for that year (same amount) back into the loan. Which means by the time I graduate, I would owe the bank a significantly lesser amount of money. As the loan is interest-free for the first 5 years, I think it would be a waste to repay the loan so soon.

I hope someone can advise me on how feasible this is, thanks for reading.