I have an idea about how to pay off my student loans. What's your opinions? See below.?

All numbers are rough numbers, so the idea comes through better:

I borrowed 20,000 from the government, which I am set up to pay back at 5% interest over the next 10 years.

If I were to lend 20,000 to a bank at a higher interest rate, over the same time frame, wouldn%26#039;t I be able to use the interest income I earned from the 20,000 I lent to pay off the interest expense incurred on the 20,000 I borrowed?

Of course I would, if I lent at a higher rate than I borrowed. My question to you is: Is this arbitrage possible in the real world?

I have an idea about how to pay off my student loans. What%26#039;s your opinions? See below.?finance

It%26#039;s possible, but would only make sense if you only owed the interest. Since you have to pay back principal and interest, the interest you earn by lending your $20k would have to be substantially higher in order to repay the principal balance and the interest. If you want to save some money, take your $20k and pay off your debt now. Although 5% is a pretty low rate and you might get some tax benefit for paying it, you shouldkeep your debt at a manageable level until you get finacially established.

I have an idea about how to pay off my student loans. What%26#039;s your opinions? See below.? loan

its done all the time|||yes with a capital YES|||u know what my boy i think u should prove your inteligency in exam rather than on net,tell u what u not gonna finish that dgre and when u drop out and work in construction u wont even afford to payback the debt, the taxman will knock on your door, ur 3 seconds to credit bureu, pls study hard and forget conning the goverment|||The interest you earn, which by the way, won%26#039;t come near that 5%, will be taxed, whereby you will lose in the long run. If you loan it out to an individual and it is not secured, and he doesn%26#039;t pay you back, you lose again. You got a good loan deal with 5%, pay it off and save you credibility.