Student loan payoff

[Norway64]

My credit report shows two derrogatories for students i cosigned with my son in 2000. After defaults occurred by my son in August 2009, I have been taken over all payments at $435 monthly, and am considering escalating payments so the total balance is repaid by January, 2013. The current balance is approximately $15,300. The derrogatories are to be removed in 2016, seven years after the late payments first occurred. The interest rate charged on the accounts is only 3.5% annually. My question is, from a credit scoring standponit, is it advantageous to pay off the loans three years before the derrogatories are removed. And after they are removed with the accounts remain on my credit report as accounts in good standing. Thanks in advance for any imput you may provide.

[Tazman81]

If feasible for you, I would go ahead and pay off this loan as quickly as you are able to.  It will not make a difference with regard to the baddies whether you pay the loan off now, or whether you pay it off in the future.  They will remain on your report for 7 years from the date that they happened.  The good news though is that after the baddies fall off, then the "good" payments will remain on your report for 10 years.

[Travis-84]

Also, with interest rates that low, there is a good possibility they have variable interest rates.  (unless you consolidated into a fixed rate.  If they are variable, they adjust in July of every year.  They should go up a few basis points in about 2 weeks.  Predicting what will happen next year and beyond is a bit more difficult.  I doubt the interest will change much in the short term, but the sooner you pay it off the better.