So I got a student Loan and Pell Grant from the Gov. for school. And the Pell Grant Covered my tution costs and book costs. The loan had a option of 4750 dollars, I decided to take out a 4000 dollar subsidized loan, while I had around 400 in my bank account I felt like it would be good to just have some more cash just in case a rainy day happened.
But Im starting to think maybe a good way of using the money is investing it. And I was wondering if people have any ideas on what I could do.
This. If you're a student with $400 in your bank account you have no business being leveraged in anything with risk.
Taking out the loan was a good idea. It won't accrue interest till you graduate so there is no reason why you can't throw it in a CD, t-bill, or t-note and make a little interest. Just make sure you pay it back in full before you owe any interest. Plus, it will look really good on your credit report when you finish up.
^This ... Don't settle on a CD if you can get a higher interest savings account somewhere ... just make sure you're putting it in a low risk account where you're guaranteed to make some on your deposit. Look around for a day or two to see what kind of deal you can get, the interest rates won't drop between now and then and you'll most likely come across the perfect type of account for you.