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As a very recent grad myself (University of Pennsylvania Med 1999) I'm with JLC. Those loan checks don't come on time, requiring people to routinely live on credit card debt sometimes (yikes!) and have many sleepless nights (you'll have enough for the next few decades already). Even though you will be able to defer loan repayment without accumulating interest and even though that interest will likely be lower than almost any other loan, don't be too smart by trying to continually beat the market. In other words, even with the sweetheart deal they give you as a medical student, don't borrow money to invest as a general rule.

I know this gets some flak from the big margin players, and I understand that over the very long term borrowing in the single digits to invest consistently in some of the Foolish screens will make you money, but it's not worth it. If you only have a few grand in the bank, you need that wiggle room now and in the future for unforeseen expenses, etc. At the most I might put a small fraction of it into a year-or-less CD to squeeze a few extra bucks. But keep that moolah available.

If you don't invest it now and decide in four short years that I was wrong, then have $6000 extra deducted, pre-tax from your first couple of years of residency and put into the 403(b) that you should already try to maximize your contributions to.

Best of luck.

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