<p>D was offered Perkins and Subsidized Stafford loans as part of her package. While I initially thought we would not need to take all the P and S loans offered, my husband says we're crazy not to take advantage of the no interest loans. He thinks our $$ kept in the bank will be better off sitting in a CD earning interest - then at the end of the 4 years (or however long...) we can use the CD + interest dollars to pay off a chunk of the loans right away. </p>
<p>My logic was to avoid using loans as much as possible for the first year, paying as much as we can afford and then rely on them the following years when we've spent out some of our/D's savings set aside for college. </p>
<p>Opinions???? We're talking this first year about maybe $6000 in P and S loans total.</p>
<p>I agree with your husband. If you take the subsidized loans you will pay no interest on them and by leaving the $6000 in the bank earning interest at say 5% then you will make $300 the 1st year and @ $1300 over 4 years. </p>
<p>Also you do not know if your circumstances will change and you may not be offered the loans every year so it may be best not to rely on that - I would take them this year.</p>
<p>Well, he generally is the one with the financial expertise, but I've been running all the college research so I've seen the loans some people rack up and it scares me!!!</p>
<p>He said the exact same thing about the 5% interest. Darn, do I have to tell him he's right???</p>
<p>I agree with the others. Don't think of it as racking up loans so long as you have the money to pay them back (earning some nice interest along the way). You might as well use this situation to your advantage!</p>
<p>Another perk....the subsidized and Perkins loan will be listed in your child's name...and by paying them off after graduation in a lump sum, you will be helping your child generate good credit.</p>