Take a 401k Loan? In this bear market my money is not making money in compound interest?

Over the last 3 months my 401k lost over 7% interest. I currently have about 15-16k in there right now with a 5% contribution and also a company match. I can only borrow up to 7k from it. I have some student loans (about 14k) with 10% interest and 5.5% interest but I do not plan on consolidating these due to my debt payment plan being such a short amount of time. I would like to take the 7k loan to pay off the student loan with the 10% interest, and use the 24 month pay back schedule with my 401k rather than the 60 month. The deductions for payment plan come out of my bi-weekly check after taxes of course. But this will not be uncomfortable for me. In this type of situation wouldn't it be better to take this loan to pay off debts with interest? I would be paying back the 401k loan with 7-8% interest and actually would be able to pay it back within 12-24 months time.