Hitting up the Fed Gov

[hip2btriangle]

Okay, so I may be asking a really newb and stupid question, but I'm curious:

I have had the fortune of not having to take out loans for any of my education up until now, and I'm starting a program now with guaranteed funding. I'm 99% certain I won't actually need to take out loans, but I've been told I should take out the max Stafford subsidized each year ($8500) to accrue interest, and then just return it all at the end of my program.

Stupid? Smart? Thoughts?

Edited May 12, 2010 by hip2btriangle

[bon to the jour]

I actually looked at that. the interest on 8500 at my bank is only $4 a year... totally not worth it

[eucalyptus]

I'm considering doing that with Canadian student loans... I was thinking about investing it somewhere really really safe (like a Canada savings bond or similar). I figure this will be useful in case something really unexpected happens and I need some cash, since it's better than taking out a non-student loan. Otherwise, I plan to just pay it all back the day I finish school.

[newage2012]

I actually looked at that. the interest on 8500 at my bank is only $4 a year... totally not worth it

A certain big bank gives out 2.5% per year for a 5-year certificate of deposit. You must be looking at a very crappy bank. Better move your $ elsewhere.