Re:Don't put it in stocks or stock funds (Score 2, Insightful)

Ethics? He didn't claim to lie or cheat to aquire this loan, he qualified for it and will have to pay it back, it's not free money. I think he is smart to take what he can get even it is only to use as a safety net. Every financial planner I know of recomends that everyone should have an emergency fund that could cover 3-6 months living expense, is a student exempt from this approach? I personally had to take a half year off school because I didn't qualify for enough of a student loan to carry me though my third year (makes me wish I had applied for a loan and invested it during my first and second year - just in case.)

As far as investments go I know that in Canada we have some funds that are effectively saving accounts (your principle is protected) that pay as much as 4.5%. If you decide to invest using funds be sure you understand what an MER and load are and how they can impact your returns.