A college degree, depending on college prep accomplishments in high school, requires 4 to 5 years to accomplish.
A Roth-IRA account requires a 5 year investment horizon on contributions (moneys deposited into the account) before the original contributions are able to be withdrawn without distribution penalties.
Student loans do not accrue interest until 6 months after your graduating semester and then accrue interest at roughly 3% over the federal interest rate set at the time they are borrowed.
The average rate of return on investing in the S&P (SPY ETF) over the past 20 years is 10.05%.
Therefore, I am advising my daughters to apply for a ton of grants and scholarships to where all their college and living expenses are covered AND to max out their student loans specifically so that they can deposit the loan money directly into their Roth-IRA, because if they apply for PAYE, or REPAYE (income-driven repayment program) they'll pay like 95$/month on the 30k in loans, and five years after they graduate a 10% compounding interest on 3750 invested twice annually, will have the balance at approximately 63k five years into their career, in which they can just withdraw the 30k in contributions tax-free, and pay off their loans in full while netting 33k in profit for their retirement which they can borrow 10k against for a first-time home buyer
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