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Community Leader
Valued Contributor
Posts: 1,351
Registered: ‎06-09-2008
Re: Pay off full student loan balance ($4.2k), or continue to make $480 payment per month?

I'd say pay off the loan.  Paying it off probably won't impact your score much either direction, but the good history from the account will remain for about 10 years (and in the interim, you'll hopefully build history with other accounts to replace it when it finally does fall off your report).  In terms of a financial decision, you'll save a good amount on interest depending on your rate.  You'll also never be at risk of missing a payment (due to forgetfulness, error or anything else) and have one less thing to worry about each month.

 

It sounds like you'll still have plenty of money left on-hand for an emergency afterward, so I would just pay it off.