<p>Many advise against it, but we did it toward the end of our college paying years - which will span 10 years for three kids. We spent the college savings first. Now the 401k loan helps spread out the final two years of college payments over five. We figure we’re good for it (job is secure), we’re paying interest to ourselves (unlike the parent loan), and at 4.5% it’s a pretty good return for a portion of our 401k. Thus it was a risk worth taking for us, but we resisted doing for as long as we could.</p>