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Posted in Student Loans
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paramagic1

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Will paying off my student loan immediately help or should I keep paying monthly payments?
I have over 30,000 in savings and only 7,000 in student loans. I am planning on purchasing a home in the next year. would paying off that student loan help or should I hold off?

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Top Contributor
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It depends on a couple of factors

Paying off the $7k will really only help in terms of whatever remaining interest payments you save; which on that amount won't be too significant.

If you are set on getting a house in the next year and the rates on the student loans are reasonable; I would hold on to the extra money. Down payment, closing costs, initial house expenses eat things up very quickly. The extra liquidity can help.  In terms of impact on your credit; it probably wouldn't have much whether you pay if off or keep making on-time payments (assuming you have other open credit still).

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