Investing your OSAP - Advice for the Canadian Student
- Filed under: a Fools View
- Date: Sep 29,2008
Are you a student that will be getting free money from the Canadian Government? Is your OSAP loan going to be well over your needed amount?
Invest your OSAP loan and graduate be debt free!
Well let me break down a scenario for you;
Student Yameen is given $10,000 (ten thousand dollars) every year from OSAP but only needs $5,000 (five thousand dollars).
Yameen deposits the $5,000 into a high-yield savings account (i.e. ING Direct Canada) with interest accumulating at 4.75%
Now, if Yameen stays in school for an entire undergraduate year (four), he’ll receive 4.75% every month for four years on top of the principle amount.
Formula
Month One: Principle x Interest =Month One
Month Two: Month One x Interest =Month Two
Month One: 5000 x 1.0475 = $5,2237.5
Month Two: 5237.5 x 1.0475 = $5486.28
And so on and so on.
Just imagine gaining that kind of returns on basically free monies!
Investing your OSAP is the greatest tool for young post-secondary students in Canada and we, as students, should take advantage of such resources while we still can!
A fools view on Investing your OSAP is JUST DO IT!
B Yameen /a Fools View
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