<p>Should I accept a Federal Direct Subsidized Loan if I don’t need it? Would it be financially smart to do so?</p>
<p>It could help establish a good credits history. And if you don’t need it, you could conceivably out it in the bank and then pay it off in a lump sum with little or no interest payment.</p>
<p>If there is a chance you may need a loan down the road it may be a good idea to take it. In our situation D shouldn’t need to take any loans if she graduates in 4 years, however she is considering changing to a major that could potentially add an extra year or two since she is starting that major late and it has a locked in 4 year curriculum. We have told her that she is on her own for anything over 4 years so if she wants to go this path she should take out student loans each year so she has enough saved up for that last year as we are not planning on cosigning any loans.</p>