DD just received her financial aid package from University of Pittsburgh. She has the ability to borrow $3500 in subsidized Stafford loans and another $2,000 in unsubsidized loans. From what I've read, the subsidized loan does not accrue any interest until after the grace period, whereas the unsubsidized does. Although we have the money saved for her to attend college, I've been thinking about having her borrow the subsidized Stafford loan, and paying it off for her as soon as the loan is due. My thinking is that we could basically borrow $14,000 interest free, while keeping our money intact. I know there is a 1% origination fee on the loan, but I still think it would be worth it. Am I missing something here?