Theoretical Jackpot Cash Out and Tax Implications?

Really a judgement call and personal opinion. Blow your professors mind away by stating that cashing it now is best because their is no telling what taxes could/would be next year and the quicker you pay off anything then the less interest is paid. Or, confuse the crap out of him by stating to claim as much as possible as repayment of loan to the city, state, county, and federal government for taxes paid. Hey, it's only finance 110...if he laughs he will probably give you full credit anyway. If you really need the extra credit then I would suggest crunching the numbers out for him. If it's a p/fail line and a scholarship or money rides on your answer then answer that you would suggest them to cash now and make a charitable donation to your newly recognized school payment fund!!