I'm currently in my graduate studies in Canada. I have around 20k in savings. I will make around 8k more by the end of studies in savings without accumulating any more debt. I currently have 20k in debt from my undergraduate degree from the government loan program OSAP. This debt is interest free as long as I maintain my studies. I am not sure if I will pursue a phd after my graduate studies and so presumably after the next year (14 months) I will have to repay the 20k.
So in essence I have the liquid money to be debt free at this moment, but the debt will not accumulate any interest for another year. It seems like some investments into things like index stocks may provide a small profit over the course of the year with some fraction of my money that will need to be used to pay back the loan in the future.
A couple of my thoughts:
I've heard that the market isn't doing to well at the moment. Although I believe index stocks do well in the long term, is 1 year too short a time where its possible they loose money
The calmness that comes with knowing I hold no debt is very tempting
Perhaps investing the amount I would have saved extra by the end of the studies? The 8k I would have ontop of the 20k
I've considered safe options like GSA bonds but they have rather small return (0.05%/year)