Free money for students!

[EJK]

You can save up to $3,687.37 by simply doing NOTHING.
Sounds complicated? Yeah but it will work, here is my theory. If you can’t be bothered with maths (or not a student), then don’t read on. However if you really want to know how to save more than $3k within 3 years, read on.

Alright kids, you all know that you can borrow up to $1000 of “course related cost” right? Also you guys can borrow that $1000 for every semester. Yes? Oh, did I mention its interest free?

So far: You guys can borrow upto interest free $6,000 in 3 years time.
Now time for some maths… (Press Alt + F4 whenever you guys want)

1st Semester: You start with borrowed $1000. But hold on, before you do all this, you must create an untochable savings account for yourself. Untouchable, which means you can not withdraw ANY AMOUNT of cash. This is really important.

So yes, where was I… You start with a Thousand dollar. Put it in the untouchable account.
By end of your first semester, you will receive $1,016.08 thanks to the happy 3.25% pa interest. Congrats you have earned $16 dollars for being very patient. (Ok lets move on quickly now)

Beginning of your 2nd semester, you apply and succeed getting another $1000. Gaining you $2,016.08 for your next semester. Keep it that way and you will end up earning $2,048.50 by end of the semester. That’s $48.50 for you for being very patient.

And so on you follow my train right? Every semester you get $1000 plus the interest and your savings (It would be much easier if I could write a java program on KB! Aargh).

2nd year 1st semester: $3,105.00
Oh wait here, if you are with the National Bank, the interest rate goes upto 3.75% from 3.25% when your funding reaches $2500.

2nd year 2nd semester: $4,181.08 (The higher interest rate kicked in)

3rd year 1st semester: $5,277.10
3rd year 2nd semester: $6,393.84

Congratulations you have now graduated the university. Now it’s time to pay back the money, total of $6,000. Oh now hold on, you get something left! $393.84, how did that get in there?
WOW Congratulations, you have earned $393.84 for doing absolutely no shit kidding NOTHING!!!!!

But hold on! This gets better!
If you can save $10 a week (Automatically depositing $10 every week to the untochable account if you have a job or an allowance), by end of your 1st semester you will see total of $1,277.46 in your account (Same 3.25% p.a. applys).
So on and so on…
By end of 1st year 2nd semester: $2,575.46 (note that $1000 gets deposited every semester, Plus the 3.75% p.a. again kicks in from now)
2nd year 1st semester: $3,963.40
2nd year 2nd semester: $5,255.95
3rd year 1st semester: $6,633.57
3rd year 2nd semester: $7,652.10
So if you save $10 (2 Bacon and egg pies and a bottle of coke) a week, you can SAVE upto $1,652.10. By the meaning of SAVE, I mean THAT amount of CASH can be YOURS! IN CASH!

Hold on! I’m not finished, it’s double time!!!!
Now lets say you will save $20 every week (2 Pies, a bottle of coke plus some Friday Chiller’s alcohol drinks).
Again you will start with $1000.

By end of 1st year 1st semester: $1,538.83
1st year 2nd semester: $3,109.24. Note: 3.75% already kickes in!
2nd year 1st semester: $4,708.76
2nd year 2nd semester: $6,337.92
3rd year 1st semester: $7,997.27
3rd year 2nd semester: $9,687.37

Now lets pay off $6000, you will have saved a total of $3,687.37 Interest free, tax free, clean cash in your pocket!!!!

Man I love maths! I’m a year and a half late but I think I’ll start now.

Note this too: Studylink has borrowed/ givin away almost $5.7 Billion dollar last year. Now as time goes by, they will get fussy about letting the money. Now is a good time to claim “course related cost”. I’m thinking that in the future they’ll do a lot of background and credit checks.

So, Act now. Time is gold (ironic huh), Sieze the moment! Damn fuck sake why I figured this just now! I could’ve started earlier! Damn it…

*Above statics are for National Bank School Plus accounts only.
** Above fundings are only capable if you are extremely patient. All calculations above have been done from www.sorted.org.nz Saving’s calculator. Savings per semester is based from 1st January to 31st of June, in 6 months period.
***By not touching the funds in the account, no eftpos or withdraw fees apply.

FAQ:
Q: It's course related cost, can I just claim it?
A: Yes you can! Just fake it! Say you have to buy 4 text books, or you catch bus 2 times a day. Or just say you are going to buy a laptop and some Microsoft Office software. They will simply give you the form, fill it out and $1000 will be in your account within 2 weeks.

Q: Don't you get caught?
A: So far none. You may be the first if you are unlucky but truely it's your money when it is in your account. You can do whatever you want when it comes in.

Q: Don't they check or anything?
A: Don't ask! No one has ever done this before! ....yet

Q: Sounds cool. How about using the over draft to furthur increase $1000 in my first year?
A: I strongly suggest you not to. Remember, your first semester's interest earning will be $16, however using the over draft (which costs $3 per month) will take you $18 off your account each semester, resulting losing -$2 in your first semester. Not good. However you may use the over draft, (you can get up to $2000 o.d. from the National Bank in your 2nd year of study) and deposit the whole amount to your new untouchable account. That may increase your interest earnings. I can't be bothered doing that calculations so why don't you do the maths? Thanks.

Q: Cops may read this on KB. What should I do?
A: Quick! Change your name and your personal details on your profile! But hold on, it is your money. This is not money laundrying nor fraud..... is it?

Q: Hey, is there any other way that I can score extra money?
A: Easy. All you have to do is act fast, don't hesitate, and sieze the day. You know when ASB Bank gave $40 to whoever signes up? Yeah, take it and don't use it ever again. "Carpe Diem"!

[boostin]

Q: It's course related cost, can I just claim it?
A: Yes you can! Just fake it!

This is not money laundrying nor fraud..... is it?

See you tomorrow man

[Patar]

by the end of the 3 years, you've got 6k of government money and you've 'earned' $400.
The rest of your impressive figue is compromised entirely from saving money on luxuries that you don't need, which isn't a revolutionary idea, in fact it's been plastered in the media as of late.

I've got a friend who's got a student allowance (which are intrest free until you graduate iirc) which he is just putting into a bank account and collecting the intrest on it. which is the same as collecting 1k each semester, except more money.

Now for my opinion, I think it's a piss poor idea. Not because of the "free money", but because you're abusing the system. These systems are put in place to assist student who need the help. If people continually abuse these schemes, not only does that put government funds under increased strain (you mentioned 5.7bn lent from studylink, last year alone) but it will also likely result in the termination of these programs to the loss of students who need it.


If you want to earn $400, why don't you go pick apples for a week in the summer.

[Choco]

Compound Interest - Funding my retirement since ages ago

[TOTO]

hmmmmm My new bike next year can easyly be course related cost ...


or lets make that 2 laptops $1000 each going towards the bigger engine...

EJ gets a blong !

[shingo]

...thanks to the happy 3.25% pa interest...

You know an ASB Fastsaver account gives you 8.10% interest pa, plus you can withdraw money from the account anytime using there online banking system.

[ital916]

if i'm strong willed I can save a fuckload more than that quicker than that haha.

[EJK]

by the end of the 3 years, you've got 6k of government money and you've 'earned' $400.
The rest of your impressive figue is compromised entirely from saving money on luxuries that you don't need, which isn't a revolutionary idea, in fact it's been plastered in the media as of late.

I've got a friend who's got a student allowance (which are intrest free until you graduate iirc) which he is just putting into a bank account and collecting the intrest on it. which is the same as collecting 1k each semester, except more money.

Now for my opinion, I think it's a piss poor idea. Not because of the "free money", but because you're abusing the system. These systems are put in place to assist student who need the help. If people continually abuse these schemes, not only does that put government funds under increased strain (you mentioned 5.7bn lent from studylink, last year alone) but it will also likely result in the termination of these programs to the loss of students who need it.


If you want to earn $400, why don't you go pick apples for a week in the summer.

Its true. You are right. However I'm not going to run away to Australia or other oversea countries to just totally evade IRD and the student loan.

It's just an idea thats all... Ofcourse people can earn $400 within a week, but I was just saying comically.

However, thanks for your other side of the opinion.

[EJK]

if i'm strong willed I can save a fuckload more than that quicker than that haha.

Yeah imagine, all your strong willed savings PLUS that bonus amount!

[Slyer]

Lets look at your total earnings...
$393.84 divided by 1095 days in three years..

35 Cents per day ZOMG! You're rich now!

[PirateJafa]

Lets look at your total earnings...
$393.84 divided by 1095 days in three years..

35 Cents per day ZOMG! You're rich now!

Slyer.

Kicking puppies in the skulls since 1988.

[Slyer]

Best idea ever: Save that money for 3 weeks and you can buy a lotto ticket!
That's like several million dollars of free money right there.

[klyong82]

Most banks have online call accounts that offer at least 8% return.....at 8% that would be alot more money EJ but you gonna have to be very careful to not dip into the account....I know how tempting it can be.

Have you taken into account the personal tax rate? Nice write up but I think the interest would be more given how the banks calculate their interest...

[bomma]

by the end of the 3 years, you've got 6k of government money and you've 'earned' $400.
The rest of your impressive figue is compromised entirely from saving money on luxuries that you don't need, which isn't a revolutionary idea, in fact it's been plastered in the media as of late.

I've got a friend who's got a student allowance (which are intrest free until you graduate iirc) which he is just putting into a bank account and collecting the intrest on it. which is the same as collecting 1k each semester, except more money.

Now for my opinion, I think it's a piss poor idea. Not because of the "free money", but because you're abusing the system. These systems are put in place to assist student who need the help. If people continually abuse these schemes, not only does that put government funds under increased strain (you mentioned 5.7bn lent from studylink, last year alone) but it will also likely result in the termination of these programs to the loss of students who need it.


If you want to earn $400, why don't you go pick apples for a week in the summer.

some SERIOUS flaws in your argument...MAINLY you ASSUME that us taking money from the government and INVESTING into a bank is a BAD thing. Consider this, students do this and end up SPENDING the money on CRAP like food. This money spent is the reason there is such a large student debt owing. Considering what ACTUALLY happens, EJ saving the money that he has withdrawn from the government and being able to pay it back in full means that this idea is BENEFICIAL to the government. I barely have any money that i have borrowed from the government and this money has gone on luxury items (food, shoes, clothes) and on some neccesities (such as the bike). If i had that same amount of money saved in a bank account, i would be able to pay back all the money borrowed in full, plus use the interest earned to FURTHER REDUCE my student debt.

SECONDLY where do you think the money saved goes?? Where do you think banks get the money to lend?? How do you think banks are able to pay interest?? Look into it. The reason this country is in recession right now is because the NZ population as a whole is spending almost 20% (?) more than what they are earning. ie $1.20 spent for every $1 earnt. Saving money is one of the best ways to reduce inflation and curb this.

FINALLY the farm that EJ will be "picking apples for a week" on probably has a mortgage 10 times that of EJ's student loan.....would you go to the farmer and say "stop borrowing money and start making more profits!!"?? if you want something to shake a fist at, the NZ population as a whole owes more than 330 billion dollars on mortgages alone (with interest) that is to be paid back in the next 25 years.....

Thankyou EJ for pointing this out and all the best mate. I know how hard it is to save, but having a part-time job (which you probably do) will help immensely. Just make sure you dont go over the earning threshold and end up having to make early payments on your student loan.

[vindy500]

rabo plus. 8.35% and no fees