Originally Posted by rec-cyclist
As far as spending money, maybe start a small biz, you can write it off as a loss for the first 2 years, maybe on ebay, work part time under the table if possible (I sure hope the IRS isn't reading this)
this former IRS agent is reading it, and you can write off a loss from a business as long as you need to - if it's a bona fide business and the expenses are "ordinary and necessary."
but THAT IS COMPLETELY BESIDE THE POINT, as the OP's only potentially taxable income is his unemployent - and unless it's over ~$8k a year, he won't be paying any taxes in the first place.
please never give anybody financial advice ever again.
as for the OP, he would be far better off working part-time than taking a loan. $5000 a year is $20,000 total, which is no mean sum. better to live within your means.