I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would

to know if it is a bad idea to take this 6000 and start up a Roth IRA with it. I figure that I can possibly out run the loan, pay it back, and still make money. The 6000 would give me a good starting ground to begin saving.

Is this a bad idea? Please help

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

I think this is a great idea, so long as you are careful.

First, make sure your student loan has low (or no) interest. If your loan is charging you 9 or 10% a year, then pay it off because it is unlikely for an investment to earn *more* than this.

Second, be careful with your choice of investments. You don't want to end up in a position where a risky investment takes a dive, and you're left unable to pay off your loan. At the same time, don't be so risk-averse you're not losing interest. It might make sense to diversify (ex. keep $3,000 in a high-interest online savings account earning 5% interest, and invest $3,000 in an index fund through your Roth IRA).

Remember that if you have you, you can withdraw funds from a Roth IRA up to the amount of principle that you have contributed.

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

go to the roulette table and put it on black. money comes and money goes

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

Your student loan should be at a reduced interest. Perhaps you could invest 3000 of the six and pay the other 3000 to the student loan. That must help your credit score and must put you in a better financial position. Doing so maybe you could renegotiate your loan for even smaller interest and repayments.

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

It depends.

You know that a Roth IRA can't be touched until you retire or else you'll have to pay hefty financial penalties to Uncle Sam.

If you are sure that you can pay back the balance of the student loan without needing to dip into the Roth, go for it.

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

hopefully you have a low interest loan. The interest you pay on the loan is tax deductable so it is a %26quot;good%26quot; type of debt considering that your education will help you earn more in the future. A Roth IRA is a great way to start saving for retirement. currently you are limited to $4000 per year so you could use the other $2000 to pay off some of the loan if you wanted too or you could designate the first $4000 to be applied to 2006 and the next $2000 applied to 2007. You have untill April 15 to fund the previous years IRA

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

It is a bad idea.

Anytime you borrow for a specific type of loan, and use the funds for another, it is a bad idea.

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

So you are asking if you should borrow money to start a Roth IRA?? Think about that, would you take a cash advance out on your credit card to put in a ROTH? No-- so don't do it this way.

There is no %26quot;good%26quot; debt. Pay off your student loan and then start investing.

For more sound money advice read either:

The Total Money Make over --OR--

Financial Peace Revisited both by Dave Ramsey

I currently have a $10,000 student loan, but the school recently cut me a check for $6,000. I would like?

I don't think it's ever a wise idea to borrow money to invest, even in something as great as a ROTH. What happens if the fund you chose looses money? It's not guaranteed.

I can't figure why the school is giving you more money. If you don't use it to pay for tuition isn't that fraudulent and could get you into serious trouble.