<p>I agree that it is a great loan if the rate caps at 3% for the entire 25 years. Read the small print.....twice, and make sure you understand it completely.</p>
<p>Here's one way to think of how you feel about this (provided that the interest rate cap is a reasonable one). Nearly anyone would snap up that deal in a second if they could get it for a 25-year mortgage. Would you value your Dartmouth education at least as much as your first home? Chances are pretty good that it'll fetch you a better return over a lifetime. It seems like a wonderful opportunity!</p>
<p>It's sounds very good which compared to other options makes me think twice. The reason? It's kinda out of the norm, that doesn't mean it's bad or a trick. It means you should as another said read and reread the print. Ask for an example of how the interest rate is applied, or how it compounds. What are the repayment terms? </p>
<p>It could be a very good thing, but ask to see an illustration of how it would work over that time. </p>
<p>We were faced with a similar situation where our money was earning 8-9% and we could borrow at 3%, we did with the condition that if the costs of the loan grew closer to the investment, we would liquidate the investment to reduce the loan. </p>
<p>Good luck.</p>
<p>Take the loan, go to Dartmouth. It's a better offer than most of your US friends will have got. </p>
<p>From what I know of Sweden, I doubt there are any catches.</p>