Student Loan

Steve Zappa

Level 2 Member
So, I just refinanced my student loan and $100 still remains on the original loan (the refi lender had an old payoff statement). The final $100 is not due until 2025. Does it look better on my credit report to keep the $100 outstanding to have the loans still be "open"? The original loan amount was $50k.
 

Matt

Administrator
Staff member
So, I just refinanced my student loan and $100 still remains on the original loan (the refi lender had an old payoff statement). The final $100 is not due until 2025. Does it look better on my credit report to keep the $100 outstanding to have the loans still be "open"? The original loan amount was $50k.
Having the loan history may add a bit of value to your score, as longevity counts. But personally I would pay it off. What is your score looking like otherwise?
 

Matt

Administrator
Staff member
I don't know.. its one of those situations where if you want to be really technical about it you might be better off a few pips for keeping the loan, but I'd still drop it just for the sake of clarity.
 

PedroNY

Level 2 Member
I may be wrong, but the loan should stay on your credit report for at least 7 years, even if you close it. I remember doing refi of my student loans in 2005 and seeing them on my Experian report in 2012... I don't know how much value it will add to your FICO score to have the loan open vs. closed -- I haven't noticed much of a difference when my loans got paid off, or my wife's loans were paid off.

Best,

PedroNY
 
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