Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
Posts: 1,104
Registered: ‎06-09-2008
Re: Sallie Mae and Extra Student Loan Payments

Sallie Mae is correct, and that's true of pretty much every installment loan account I've seen.  Each month, they report if you made your payment and it was at least the amount due, that's all you need to maintain a "good" credit history with that loan.  There's nowhere in the loan history for them to reflect extra payments, each month is either "OK" or past-due.


The only way your extra payments will reflect is that your balance should go down substantially faster, which may help your debt-to-income ratio when you look for credit, a loan that's very close to being paid off may not count against you at all when buying a vehicle or home.  It may also benefit you if a bank does a manual review of your file for some other reason, and you can point out to them that you paid off the loan in X years, when the term was actually 10 years.