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Great deal on a loan?
One of the benefits of attending the Air Force Academy is that I can get a $35,000 loan from the government at a very low rate of interest (less than 1.5%) at the end of my junior year. At that time I will be 21 years old.
Should I take the loan and invest it aggressively? The interest rate is lower than the historic rate of inflation, so the odds are good that I will make money on the deal.
However, I am leery of investing borrowed money. There is no obligation to take the loan.
Is the opportunity to profit worth the risk?
Please explain what you would do, and why.
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