New Member
Posts: 5
Registered: ‎08-10-2012
Re: What is the best way to pay off my Sallie Mae loan?

laz98 wrote:

Welcome to the forums!  Smiley Happy

 

It's up to you.  Is it more important to you to have that money in savings, or to have your loan paid off?  Installment accounts are a very small portion of your overall credit score, so it's not going to make a drastic difference either way.  Personally, I would just keep making my small payments.

 

If you paid a big chunk, you would reduce the principal owed, not your interest rate.  It should not affect your interest rate at all.

 

I have yet to pay off any of my student loans, so I can't tell you what the most "hassle-free" way to pay one off would be Smiley Happy


It's definitely more important for me to have the loan paid off, I only created the savings so that I can save up the full amount, while earning interest on it to help me out a little. I just don't get how sallie mae works since I've read so many different things in which people had a hard time with them particularily when they wanted to pay more than the minimum amount to decrease their principal and there was a complex process involved--I guess that's my real question..

 

Thanks for answering my other question and the addtional information: I didn't realize what it would do to my credit score but it's nice to know not much would happen Smiley Happy.