So im going for mba. been worried about the cost. so i came up with this ultiamte idea:
step 1 borrow as much student loans as possible at the 1% rate. roughly 300k over 3 years. pay off tuition at 150k.
step 2 deposit leftover money of 150k into my ibkr account. and keep as cash or short term bond while waiting for stock market pullback. (buy assets when cheap).
step 3 borrow margin loan at 1.5% from ibkr account as 75k cash. roughly 50% of portfolio.
step 4 use borrowed money to invest in real estate private equity. about 75k expected to double to 150k in 4.5 yrs. thereby negating tuition costs.
i could also just get 300k as cash. borrow 50% or 150k to pay off tuition. then i have 300k liquid in cash waiting for stock market pullback.
also i will have other money in it to keep margin calls from happening, should i buy too early and market tank further than expected.
also what if someone were to do a loop. such as 300k. margin at 150k cash pull out. then deposit that 150k again to pull out 75k. pull out then deposit 32.5k. etc etc. multiplier effect amirite6
also do margin loans affect credit score?