Credit Advice

Paying off any loan including goverment or tuition assiad loans will increase your credit score

Uh, actually I thought it was the exact opposite? I was lead to believe that paying off loans early DECREASED your score because it shortens the life of your accounts?? Can someone please clarify?

thank you for the response but which answer is right the first or the second? 

A lower amount of debt with the same number of accounts open gives you a higher credit score.  At the same time, fewer accounts means a shorter credit history which gives you a lower credit score.  So both answers are actually right, in a sense. If you're in a position where you are able to pay it off, you might consider paying all but a few hundred dollars, then negotiating smaller payments for the remainder of the loan.  That would be a tricksy way to try and get the best of both worlds, and it might be a good option if you don't have much credit history.  It would maintain your longer credit history but also give you a lower debt load. If this is your only credit history, then IMHO you should try to keep the accounts open until you've established other credit for a while.  If, however, you have other credit already, I'd totes pay it off ASAP.