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Posted in Student Loans
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Question By
Jmelick07

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Paying off Student Loan in Full
I have an unsubsidized student loan at 6.8% intertest with a balance of just under 7k currently. I also have two subsidized loans at 4.5% for close to 3k but those are collecting interest since they are in deferment while I am in graduate school.

I have 20k in savings right now and am debating paying off the entire balance of the unsubsidized loan. Will this hurt my credit score?

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I would pay them all off. Why would you continue to pay interest on a loan unless your earning more than 5% on your savings? With zero debt it will be much easier to manage your credit.

Reply by
Jmelick07

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Wouldn't paying off the loan right away hurt my credit in the short term?

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Hi.

I've been paying off my student loans, specifically the ones that are incuring interest, while still in school. I've been noticing an improvement with my credit score. 

Hope this helped.

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