<p>Song - Normally I’d agree with you on that point, but at that interest rate it’s impossible to turn it down. It’s the lowest interest rate you’ll ever get on a loan in your life, might as well make it work for you. </p>
<p>Also I’m not a big fan of TSP. Sure it reduces your taxable income, but military members pay less taxes anyway because of tax free special pays and housing allowance making up about a third of our pay. I’d have to sock away some serious money into the TSP to even get into the next lower tax bracket. That said, 2011 will probably be a different story since taxes are going up.</p>