<prompt> Human: I qualify for federal subsidized loans that I currently do not use. Im considering accepting these loans and investing the money in an IRA. Ill pay a one time fee of 1 which is immediately realized during payout 99 of principal is given. I wont be responsible for interest until I finish my degree in 2-3 years which is about 3.5-4. My reasoning is that I can earn 7-8 on this money in an IRA. My concern is that theres some factor that Im not accounting for. I would appreciate any advice concerning this matter.  <response>: My reasoning is that I can earn 7-8 on this money in an IRAYou make it sound like you can predict the future. In such a short amount of time, your gains can be up 7-8 or better or it can be down 7-8 or worse. Can you stomach a 7-8 loss after 2-3 years?Factoid: From a high in October 2007 until a low in March 2009, the DJIA lost over 54 of its value. Thats all in less than 2 years. 