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Posted in Student Loans
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sooner158

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Student Loan Payoff
I can afford to pay off my student loans right now. No problem. However, they are my oldest credit accounts by far and have a relatively low interest rate. So will the fact that they are "closed" negatively affect by credit score by lowering the average age of my accounts, or will paying them off raise my credit score by decreasing the amount of my debt? The record of the accounts would still be there, so would they still count toward my accounts' average age? Need an expert opinion. Thank you in advance.

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How are your emergency and retirement savings? If the interest rates on your SLs are lower than 3-4%, then I'd personally continue to pay the minimum and put everything else towards your retirement. It's better to save a TON earlier so you have more years of compounding and you'll make more money in interest from saving it in a ROTH/401K than you'll save paying off your SL.

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