Advantages to NOT paying a student loan...

[Anonymous]

I can't for the life of me figure this one out. Also forgive me, my native language is French not English

First of all, I have less than 15k in subsidized student loans, and 1k in unsubsidized, and just over 2 years before repayment begins due to an occupation-related arrangement. I've recently come into some windfall money and I have several options with what to do with it. I could pay off the unsubsidized or I could do several other things (no, I don't mean more toys, just other things).

It would be great to be interest free, BUT! I do not have a lot of loan-type credit history. I do not have an auto loan or mortgage or anything else like that. I have plenty of credit cards, but with this student loan, I was actually excited to add a "good" loan to my credit profile. Would paying it down but keeping a low balance be better? Or should I just pay it off and allow the subsidized loans to create the loan relationship I'm wanting? Speaking of which, will student loans be reported before you enter grace/repayment or not until then (and does this timing differ between subbed/unsubbed)?

My loans are through Mohela, if it helps. Thanks!

[SCF]

Pay off your loan unless you have higher interest debt, or can get a better return elsewhere (for instance, a down payment on a home, more education for yourself or similar might yield better returns for you overall than paying off the loan).  There is no reason to pay interest to build credit, and there's no real benefit to having more than one student loan on your report.

The loan should be on your report already, the account itself opens when you borrow the money, and is reported as deferred until you payment status changes.