[cdxx]

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The only problem I have with your question is the use of the word "gambling". If your intent is to put 20K on black or 1 hand of blackjack... don't do it. If your intent is to make smart "investments"... then do it.

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investing is fine, but you should realize that if a buddy of yours tells you "YO! stock XXX is going through the roof, put all the money you have into XXX NOW!" or EVEN splitting the money between MSFT, IBM, and ORCL is essentially gambling.

i would NEVER put $20k of borrowed money into a single stock or sector, no matter how it's chosen. i would probably put the $15k into a good blended fund at fidelity, with $4-$5k in a sector fund i expect to do well (for example energy would have been an incredible pick 6 months ago), using it for emergencies and big purchases (which you would normally finance at a high rate), and in 2.5-3 years, when your school and grace period is over start paying it off, either from a paycheck or simply making automatic payments from the fidelity account.

you are correct that there's little reason not to take the loan. you just have to be responsible with it. you should be looking to make (loan rate)+(5-10)% annually on the money that amounts for essentially all your money. don't worry if you missed out on a sector that shot up 60%. be thankful you came out ahead.