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Icuf8kn

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Delinquent student Loan - payoff or make payments
I have a delinquent student loan that I have the ability to pay off in full in a single payment but the lender suggests I make 9 payments instead of just the one. Difference is after 9 o time payments they will Remive the delinquent versus paying off in one payment in which case they will close the account at a zero balance but leave it at delinquent for the next 4 years. Keeping in mind I would also incur an additional $1,400 in fees and interest over 9 months, Which method would have the greater impact to my credit rating and makes better sense overall?

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This is only something that you can decide. Are you planning on going for any major financing over the next couple of years? If so you may want to do what is best for your credit and make the payments. However, having the ability right now to get this debt knocked out forever and saving $1400 in the process that is very tempting. You never know what could happen over the course of nine months. Could something pop up and prevent you of following through with the payments and then you are still stuck with this debt with added fees on top? You cannot foretell the future, so who knows what would happen over the next nine months. With this being a delinquent account right now, how bad is your credit? If not terrible and you can get by with it you might consider paying this off in full. If it were me, I would lean toward paying it off in full as I would be more worried about getting the debt cleared forever, saving the fourteen hundred and having peace of mind. It is your call.

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