I have some money that I and my parents have saved for med school. I have enough to eliminate all of my unsubsidized Stafford loan for M1 year, and then for part of M2 year. To me it makes the most sense to delay taking out unsubsidized Staffords until the last possible time, rather than paying equal amounts from my savings each year and having loans from each year accruing interest. Is this the best course of action, using my savings first and then taking out unsub. Staffords? Thanks Edit: I realized that doing this would probably take me over the limit for total annual Stafford loans in later years, possibly screwing me over and forcing me to take out private loans at high rates, unless I'm offered more grant money through the school, Perkins, and other need-based aid for which I don't currently qualify. Thoughts?