Wouldn't it be better just to use the money to defer having to take more loans out?
Well perhaps. But at some point you've got to start saving for retirement. Our older generation unfortunately started saving to late as a majority.
In a tax deferred account taking on moderate risk, compound interest and all those things could give you nice gains (outpacing the interest rates on your loans overtime). Tho this is not an easy task expecially after the freakin government got rid of subsidized loans.
I've been going thru a similar debate with med school loans, tho I worked as an investment analyst for a few years so I know a thing or two about risk/returns and portfolio management.
So I'm leaving some of my saved capital in an IRA and taking some risk with the hope of solid long term gains