Re: Pay off part of student loan
10-11-2012 08:13 PM
It is possible to pay off that part of the loan, since its a seperate account, and your payment will go down by the amount that was being allocated to that loan.
As far as your FICO score, it won't really have an impact. The loan will continue to report for 10 years with its current payment history (thought any negatives, like late payments, fall off after 7 years). It might move your score a few points due to changing the number of open accounts, but as the fellow above me said, you'll need to look at the bigger picture if your goal with that money is to improve your credit score. On the up-side, paying off the loan will save you a good chunk on interest, and get you that much closer to being debt-free!