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"...making it effectively an interest free loan."
No, it isn't. Typically, the money you borrow is placed in a fixed-rate account. This secures the loan. But you lose the market opportunity that money could grow if invested instead of set aside.
Normally, one's 401k is the last resort for lending.
Doctorate in something
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Well, the good news is it’s an interest-free loan in that you as a student are not paying interest. The bad news is it’s an interest-free loan in that you as a retirement saver are not receiving interest.
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The flip side is that if you take a loan from your 401(k) right before a market downturn, you end up better off. But if you can time that sort of thing, you're better at this than I am.
BS, Information Systems concentration, Charter Oak State College
MA in Educational Technology Leadership, George Washington University
EdD in Professional Studies, Thomas Edison State University, in progress
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https://linkedin.com/in/stevefoerster
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As others have mentioned getting a campus job lowers tuition. I was fortunate enough to receive a 50% off tuition grant while also working at a local fedex to cover expenses.
McGill University - Bachelor of Arts in Classics & Philosophy
Harvard University - Masters of Liberal Arts in International Relations
- Graduate Certificate in International Security
