Student Loans Payoff or Open Installment?

[redhouse69]

I have about $1500 remaining in student loans with nelnet.  I have 4 or 5 times where I was very late.. like 120+..  I have paid on time for about 20 months since the last late.  They are showing a 54month history which is killing me I guess.  My questions are. 

If I were to pay the loans off how long would the loans stay on my credit given they were taken out in 1996?  Would they simply go away?  Doubtful..

Would I be better off to pay the minimum and keep open as long as I can for the benefit of an installment and a 14 year credit history?

Thanks for any help you can offer.

[laz98]

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@redhouse69 wrote:

My questions are. 

If I were to pay the loans off how long would the loans stay on my credit given they were taken out in 1996?  Would they simply go away?  Doubtful..

Would I be better off to pay the minimum and keep open as long as I can for the benefit of an installment and a 14 year credit history?

Thanks for any help you can offer.

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closed accounts stay on your reports for 10 years.  they will not go away just because you pay them off.  in theory, having long-history accounts on your reports is a positive thing.

depending on your interest rate, you may want to pay them off sooner rather than later.  i really can't say what would work best for you.

[redhouse69]

Thanks for the reply..  Is that 10 years from final payoff date or?

[laz98]

10 years from whenever they are reported as closed, probably 30 days after you pay them off.

[Anonymous]

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@redhouse69 wrote:

I have about $1500 remaining in student loans with nelnet.  I have 4 or 5 times where I was very late.. like 120+..  I have paid on time for about 20 months since the last late.  They are showing a 54month history which is killing me I guess.  My questions are. 

If I were to pay the loans off how long would the loans stay on my credit given they were taken out in 1996?  Would they simply go away?  Doubtful..

Would I be better off to pay the minimum and keep open as long as I can for the benefit of an installment and a 14 year credit history?

Thanks for any help you can offer.

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After the account is totally paid and closed, it can remain for up to ten additional years.  The individual late payments will drop 7 years from the date you were supposed to pay by.