Is there any issue in paying for school out of pocket vs taking out a loan?

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No you can do that

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You can pay out of pocket, that’s what I have been doing while at school. I would also wait and see if you get scholarships and it can significantly decrease your need to spend while away at school (full ride saves you ~150k in spend, still will need money for COL, travel, etc.)

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Most loans you don’t need to pay back while in school. So why not keep your money in a HYSA and make a couple thousand while interest doesn’t start until after school?

No there’s no issue, Deloitte reimburses you as a bonus essentially which includes there perceived class interest rate. Since they aren’t paying the school or the lender directly it doesn’t matter how you choose to pay for it

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