Contributor
Kr33ker
Posts: 143
Registered: ‎04-11-2012
Pay off full student loan balance ($4.2k), or continue to make $480 payment per month?

The answer to this question almost seems like a no-brainer, but I figure I'll ask you guys anyway.

 

I'm currently paying back  at $480/month ($400 over minimum) a small student loan balance of $4.2k from when I graduated in 2011. I'm an engineer and currently make $50k/year, and have $12k sitting in a checking account making 1% interest. I was originally not paying off the loan to boost up my credit portfolio, but I now have a pretty good score + cards, and can garden if my score takes a hit.

 

Should I pay it off in full? I'm thinking I should.

 

Any other investment options? I was leaving the money in the checking account because I was lazy and didn't want to make any bad decisions with my money.

IT (11500 CL), Freedom (5000 CL), Zync (500 CL), PFCU (500 CL)

Starting Score: 699 EQ (4/11/12)
Current Score: 761 EQ (8/15/12)
Goal Score: 800+ EQ