<prompt> Human: I wanted to know whether it would be a good idea to keep an emergency fund in cash and take out a larger loan.I was also wondering where I should keep the money during this time.I will be working each summer during the four year program at university.  <response>: If you saved up that 45k the old fashioned way or even including scholarships then you deserve a big congrats!If it were me, I would keep an emergency fund since student loans tend to have lower interest rates. Keep the emergency fund liquid in a savings account. 