new to student loans

[Anonymous]

My wife just started back to school. She got a student loan thru NELNET.

7000.00 at 6.5%.

Will it hurt her credit to make payments during school.  Or should she wait  until she is out in 3-4 years?

We would like and can afford to make the 70.00 per month payments.

[Anonymous]

I don't think it'll affect your scores much but to be honest I wouldn't worry about it. I have heard they don't like installment loans at 100% of the original balance so from that stance, it should help to pay a bit.

On the other hand, there's FICO sense and financial sense, as some people like to say. If you leave $7,000 at 6.5% for 4 years, it'll turn into $9,000. Like magic.. so anything you can do in the meantime to keep it down a bit is awesome. This assumes your interest accrues and her loans aren't subsidized.

[BabyBlue]

Since she is still in the "in-school" deferment status, early paying off the loan should not affect her credit score much. If it will, it may increase it a few points, since her utilization will be lower than 100%. It is definitely not going to hurt her.

For whatever it is worth, if I were you, I would start paying the loan off early. You will save a lot on interest in the long run.

[Anonymous]

thx, we will start making payments.