Paying off two small student loans.

[smc733]

Hi everyone, aside from my massive loans:

PNC:  $24,000

PNC:  $7,000

US Dept ED:  $7,000

MASS ED:  $6,500

I have two annoying small ones

PNC:  $667

PNC:  $1,000

Would it behoove me to pay these off since they're small.  I'll have two more $24,000 loans over the next two years until graduation, but I figure these will keep "number of accounts with balances" down on my CRs, plus they have high interest that kicks in when I graduate, so I'd rather not have them start accruing at all.

[laz98]

i would definitely pay them off

[Tazman81]

+1 to the advice from laz.  Pay those bad boys off.

Though you probably won't see a change in your FICO score by paying them off, you will have the satisfaction to know that you've knocked out 2 of your debts.  Also it will be 2 less debts that you have to deal with and juggle payments on.  Then keep up the momentum and apply the payments you would have been using on those 2 debts, to your next debt.

Next, starting to pay the one with the highest interest rate first will save you the most in the long run.

[smc733]

Sounds good, I will chip these too off then start on my 8.89% MEFA loan.  When I graduate, I'll owe the following:

MEFA:  $6700

PNC:  $7K

US DEPT ED:  $7K

PNC:  $24k

PNC:  $21k

PNC:  $21k

Kind of high, but I have some nice job opportunities in the works, so I intend to live home and get these paid off in 4 years if possible.

[Tazman81]

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@smc733 wrote:

Sounds good, I will chip these too off then start on my 8.89% MEFA loan.  When I graduate, I'll owe the following:

MEFA:  $6700

PNC:  $7K

US DEPT ED:  $7K

PNC:  $24k

PNC:  $21k

PNC:  $21k

Kind of high, but I have some nice job opportunities in the works, so I intend to live home and get these paid off in 4 years if possible.

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sounds like a good plan and will end up paying off big time in the long run.