<prompt> Human: I just finished up my first year of professional school, and am in a position to take out up to 150,000 in loans with favorable terms no initiation fee, the variable APR has been under 2.5 since the financial crisis hit. I dont need to take the full amount to pay for my education, but I am seriously considering taking out the maximum amount regardless. My thinking is that with the low rates, any excess can be dumped into an index fun to provide a small net gain. Furthermore, it would provide me a reasonable amount of liquid assets that I could leverage into favorable mortgage terms once I graduate and look into purchasing a home. I tend to be an optimistic fellow and look at the bright side of hypothetical scenarios, so I was wondering if yall could enlighten me to some of the risks in this plan, or some of the other benefits that I havent taken into account Edit: I have no major debts at this point, other than some small federal Stafford loans, and a credit card that I pay off monthly. Im going into medicine, so while I know that residency will suck, I at least know I will have a reasonable income to work with right after I graduate.  <response>: NO. God, no. NEVER. Thats EXACTLY want they want you to do. Take out the bare minimum and pay it back ASAP. Always pay as MUCH as you can. Its better to owe a different debtor, as student loans cannot be defaulted on. 