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Posted in Student Loans
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gov17

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Student loan pre-payment strategy
I'm considering a large pre-payment on my student loan such that I save on interest (after evaluating opportunity costs), but also maintain a nominal principal over the life of the loan to keep building my credit history. Would anyone know what minimum nominal principal I should maintain? I've heard that lenders/agents and credit agencies require ~$2,000 of outstanding principal to continue reporting the loan. Thanks.

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No, there is no minimum amount to have your loan reported. If you can, pay the loans off. There are better and safer ways to build credit than having a bunch of debt hanging over your head when you can't foretell what the future may bring. You could get a small installment loan for a thousand dollars or whatever and a couple of credit cards.

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