<prompt> Human: I am entering college next year and assuming scholarships which will cover almost all payments, would it be intelligent to take those loans that dont accrue intrest until after college and put them in a safe investment like a CD and then cash them and pay them off before they start gaining interest?Someone told me they recommend it even if you can take more than you need in loans and make some money off the ones you dont need...It just sounded sketchy to me so im here seeking advice before Financial aid is granted. Im new to reddit but if someone could help me out it would be awesome!  <response>: Federally backed loans, especially the ones that are subsidized, are only to be used on tuition and qualifying schoolliving expenses. Investing the loan money is a breach of the loan agreement and potentially illegal.Honestly, the subsidized loan programs were set up to help people find ways to pay for college, not so that kids who can afford to pay for college can get an extra 100year out of their bank account. I wouldnt bother. 