<prompt> Human: TL;DR - This loan isnt something I necessarily need. My questions is basically: Will the advantage of this loan, if any, provide any considerable benefits I am not seeing? Or will the benefits be negligible and I should just buckle down harder? Quick Background Myself 25M IT professional 2 years full-time experience, IT for 5. Pretty poor growing up, single mother raising the hellion myself and sister were. First in family to go to college. I try my best to make financially responsible decisions and to live humbly within my means. I nearly fainted when I got my first paycheck as an intern in college.I spent my college years being extremely cheap read: cheap, not frugal. It was, and still is, hard to shake certain behaviours and perspectives when I was poor for so long. I suffered quite literally mentally and physically at the result of my penny pinching. Ive since adapted a much more balanced lifestyle. But indeed it still remains difficult to tote the line between enjoying this ride of life knowing I could not wake up tomorrow morning versus long-term retirment planning knowing Ill likely live for another 60-70 years.The 10,000: My grandfather has been retired for several years now. He owned and operated several photographycamera stores for close to 40 years. Has some residential properties, etc, etc. Hes offered, or rather Ive asked and he accepted, to loan me a bit of money in an attempt to help me get ahead. Ive come up with what follows, but Im not sure if its the wisest approach.By practically interest free, I mean 2.3. The rough terms I will drew up: Initial Loan: 10,000 Monthly Payment: 700 345 direct-deposited every two weeks Repayment Period Interest: 14 months 10,230. Current HoldingsIncome Full-time job 70,000 pre-tax. Ive been working in IT full-time for 2 years. My take home pay is pretty close to 3,600month 1,800 every two weeks. 401k 17,000 contributing 3. Employer matches 100 of first 3, 50 of the next 2. I have only recently reduced my contribution amount. It was at 5 for basically 2 years, but I figured that extra 2 wasnt worth it and could enjoy the extra income, albeit tiny amount. Betterment 885. 90 stock10 bond. I know I should be contributing more, but right now this basically serves as my emergency fund. Teaching 500month. Ive been teaching part-time since August 17. Ill receive 1,000 before June. I dont teach during the summer, so these payments will stop until August. I basically treat this money as a discretionary fund. Current Expenses I live in the Midwest in a 1 bedroom apartment I love. Great neighboorhood, tons of resturants, bars, night-life, etc within walking distance. Rent 825month. There is a massive amount of renovationconstruction underway in my neighborhood and the adjacent city. Id guess once its complete, the area will be in much higher demand, possibly increasing my rent? ElectricHeat 130 average. Accidentally spent two winter months on EM Heat. Had no clue what that was until I did my own research :x Car Payment 400month. I bought a new 2017 Mazda 6 after driving my first car 99 Cavalier for 9 years. I plan to on getting 2x years on this. Totally happy though perhaps not the most frugal with my decision. Im not a car guy so I wont want to switchupgrade likely ever. Its just a car to me. Full loan 25,700 5.99. Remaining 23,000 Insurance 80month 470 6-month premium This is where I think I should be primarily attacking if I take the loan Student Loans 16,800. I attacked these extremely hard from 16-17. Down from 36,000. This means I dont need to make a payment until 22021.Type Amount Rate---------Direct Subsidized Stafford 4,650 3.860 fixedFederal Perkins 3,900 5.000Direct Subsidized Stafford 3,500 3.400 fixedDirect Subsidized Stafford 3,500 3.400 fixedDirect Subsidized Stafford 2,800 4.290 fixedDirect Unsubsidized Stafford 2,200 3.860 fixed Life Things 380 Groceries 100month. I generally try to stick to this per month. Rough estimate. InternetNetflix 60month Cell phone 60month. Two lines through Ting. Nightlife 60month. Usually go out one night a weekend. Again a rough estimate. Eating out 50month. I dont eat out much, but when Im suffering on my couch Saturday morning, having Chinese delivered is a miracle. Error 50. Accounting for a likely erroromission Estimated Total Monthly Expenses 1,850 My Ideal Breakdown 1. My plan is to take around 4k of the 10, and dump it towards my car loan. This would stave off my 400 monthly payments for 10 months. But then again, Im essentially just doubling and replacing this with my repayments towards the 10k loan, right? 2. I could takes an additional 2,000 to bolster my emergency fund. 3. The remaining to attack that Perkins Loan 5.00? My Reservations Even after typing all this out, Im not sure if there is any inherent long-term benefit apart from the avoided interest payments? from gaining 10k now. 1. Am I seeing things clearly? Perhaps Im just being blinded by the overall lump sum of 10,000.2. Im assuming Id have to pay taxes on the 10k? 3. What does rpersonalfinance think? edit: cleaned up formatting  <response>: You wont pay taxes on the loan but it seems to me that part of this loan doesnt have a specific purpose.I agree with using it to pay down other debt but I definitely disagree with the thought of using it for an emergency fund. 