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spinning: "One way you might be able to save money and pay-as-you-go is by using a 529. Many states have income tax deductions for contributions to 529s and some have no requirements for how long the funds need to be there. In this case you can deposit funds in the 529, withdraw them the next day to pay for qualified expenses, and walk away with a tax break. Of course, check for details with your state, your plan, and what counts as qualified expenses."

To the OP - You never mentioned what kind of savings vehicle you are using. IT is my understanding the repaying student loans is not a "qualified expense" for using 529 plan funds, though you should double check if you are using 529 Plans and are considering playing the spread on interest v. potential investment returns.

Regards, JAFO
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