dreamymind wrote:I am being offered a subsidized and an subsidized federal loan at my college. I don't need it because I got enough scholarships, but I was wondering if it would make sense to get it just to build credit. I don't want to pay any interest (and I think I could avoid it if I take out a subsidized loan and pay it off within a certain timeframe)
Did you mean a sub and an unsub? You can't get two sub loans unless one is a parental loan that your parents need to sign for you to get. A subsidized loan is when the government pays for the interest of your loan until up to six months after you graduate. Unsub is when the interest accrues as soon as you get the loan.
Even if you don't need it and you are able to pay for it right away, payment of student loans depends on the company you borrow from. Some penalize you for paying too early (before you graduate), some don't even give you an option to pay until you are out of school. Paying off the loan too quickly can't hurt you, but won't benefit you that much either...
If it really is a subsidized loan where you don't accrue interest, take it out, put it into a CD or savings account with high yields and make some interest money before you pay the loan off after you graduate. This is what I personally did when I was in school. I got enough scholarships and financial aide to cover my tuition, worked PT jobs to pay rent/bills and saved the sub loan money in a CD. After I graduated, I paid the loan off with the original loan money before they started charging interest and made a few hundred dollars from the interest of the CD.