<prompt> Human: EDIT: Youre all right; I have no debts right now, and I shouldnt go into debt just to invest. Im willing to just invest the money that I have on hand. Original Post: Im currently 20 yo and in college. Im in ROTC, and USAA is offering a 25,000 loan 0.5-2.99 interest; having trouble finding current rate. Pay back over five years, no extra charge for early payment.I have actually saved up 21,000 myself I saved until 15 and invested in equities successfully. With 46,000, this is my approx. plan: --11,500 in bond ETFs --33,500 in long term stocks wdividends hedge between 10-15 --1,000 for extra fees emergency money Im definitely not going to take the loan if its over 1.5 interest although Im pretty sure I can easily beat 3 annually added onto the inflation rate. Im very inexperienced when it comes to loans, and I just wanted to hear some thoughts or general advice.  <response>: I took the Career Starter Loan around 7 years ago at a fixed 2 interest rate and threw it directly into a 5 savings account at USAA, so they were just losing money with me. That was awesome until the 2008 crash when savings account interest rates plummeted.Anyways, I used the money to eventually make a down payment on a house and invest in Vanguard index funds. Or you could look at it as I used it as my emergency fund and used other money as a down payment and for investing.Either way, it was a cheap loan that I was able to take to make my situation more flexible and make the minimum payments on.That being said, a lot of the negative comments you see here are because rpersonalfinance is generally conservative. You need to understand that if you invest with loan money you could put yourself in a very good position if the investments do well, but youre also likely to end up losing money on the investments and still owe the loan money. 