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I hope this helps and I also really hope that someone crunches the numbers I supplied and double checks me. I didn't do this as an undergrad, so hopefully I am not missing something crucial :/

Here are some issues that occur to me:

Will they recalculate the monthly payment after you make the bulk payment, or will you have to pay a larger amount each month for the remainder of your loan?

Interest income is taxable. Student loan interest is often deductible off taxes, but there are income limitations on that.

Having the money in the bank might affect your eligibility for the stipend or other financial aid.

I assume that you're talking about a subsidized loan that won't be charging interest from you until you graduate? Otherwise your interest earnings are only the difference between the rate you get in savings and the rate on your loan.

If I were charged 3% interest
That sounds low for annual interest in this rising interest rate climate; I would expect that the interest will be higher by the time you graduate.

Good luck!
- Megan

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