Main benefit of taking out a federal student loan vs using inheritance?

So, I’m in a weird position and I could really use some advice from you guys. I’m a junior transferring to a 4-year university next fall. My grandmother recently passed away and left me a sum of money—about $15,000. It's meant specifically for my education.

My initial thought was, "Great! I'll just use this cash to pay for my junior and senior years and avoid loans entirely. Debt free!" But now I'm second-guessing myself. My parents think I'm crazy, but hear me out.

If I use all the inheritance to pay for tuition, that money is gone. It’s spent. But if I take out federal student loans to cover school, I can keep that $15k as an emergency fund in a high-yield savings account. After I graduate, I can use that money to make a huge dent in the loans, or keep it as a safety net if I can't find a job right away.

It seems to me like the main benefit of taking out a federal student loan in my specific case is that it allows me to preserve my liquidity. I keep my cash, and I get all the federal protections (forbearance, income-driven plans, etc.) just in case my job search after graduation is a disaster. If I pay cash upfront and then my car breaks down or I lose my job, I'm in trouble. If I take the loans and keep the cash, I have a buffer.

Is this a smart way to think about it? Has anyone else done something similar—used loans strategically even when they had the cash to pay? I feel like I’m playing 4D chess here, but I also don't want to be stupid and pay interest for no reason.

Hey Martin, first off, sorry about your grandmother. Losing someone is hard, even when the inheritance is helpful. I was in a similar spot two years ago when my grandpa left me money for school. I paid cash for everything because I was terrified of debt. And honestly? I regret it a little.

Halfway through my junior year, my laptop died, my car needed repairs, and I had to put it all on a credit card with 22% interest because my cash was GONE. If I had taken even small loans and kept the inheritance as a buffer, I wouldn't have stress-eaten ramen for three months.

Your grandmother wanted to help you succeed. That means more than just tuition—it means helping you stay afloat when life happens. Keeping that money accessible is honoring her gift because it protects you from the chaos. Just be disciplined. Don't touch it for stupid stuff. Let it sit there being your safety net. Future you will thank you when you graduate and can actually afford an apartment without panicking. You're thinking clearly. Trust yourself.