How does a student loan affect your credit score?

[qayikuto]

So I have 30 k of an undergrad student loan left to pay. I'm Now going for my MBA. I'm taking the online version of the program from a decent school....doesn't show up any different on my diploma or transcript.....technically I'm still going to the same university.
The estimated cost of a resident student( physically attending classes) is 60 k per year with just tuition being 30. 2 year program. I'm going to still be working and living at home.

I have 15 k in credit debt at 18% interest.
I'm being offered 3.5% variable interest rate or a 5.5% fixed.

Soo that's my question. Was thinking of requesting 45 k. Pay my first year tuition and pay off my credit cards. Then not defer my payments....pay what I was paying towards credit cards off the loan.

In a year...I'd need to request another loan to pay for my second year. So trying to see if an extra 15 k in student loan debt looks better or worse than that 15 k in credit card debt.  How about requesting the full 60 k? Then paying off 15 k immediately. So I'd still be 45 k in debt...but a higher percentage of that debt being paid off.  I expect to knock off 8 k worth of debt in the first year.
 
The reason I'm worried about the score is my next student loan....for my second year....I want to keep those interest rates low. I'm hitting 30 and living with my parents. I need to worry about a wife and a home mortgage in the next 5 years.

I have an engineering degree just graduated right before the recession....lost all leads. Entry level makes double what I'm making now....I'm over qualified apparently for entry level. basically...im managing a small business that doesn't translate well on paper....I'm aboutb7 years behind where I should be financially.....I need to do catch up and fast.

[SCF]

Welcome to the forums!

I don't think you'll get ahead by borrowing more than you need to, especially since it sounds like these are private student loans.  Utilization (the ratio of what you owe to what you borrowed) doesn't have a big impact on your score when looking at installment loans - so I think your idea about borrowing $60k and then paying $15k back immediately would just be a hassle, and possibly even cost you some money in interest and origination fees.

As far as paying off your CCs with student loans - that's tougher.  Technically, SLs aren't there to refinance your other debt, and SLs are much harder to discharge in bankruptcy.  Private SLs are still subject to the statute of limitations though, so it's not like they never go away if you wind up in a worst-case scenario.  I personally wouldn't do it, I would look for other ways to get that interest rate lowered and focus on savings and income increase to get it paid off, but you might feel like this is the best option for you.

You may have thought this through very well, but are you sure that more expensive schooling is going to get you where you want to be financially?  Taking on $60,000 of debt over two years is not something to do lightly, even if you think you can pay off $8,000 in the first year.  I know MBAs are not cheap to obtain, but they are not always worth the investment either.  It sounds like you're in a low cost-of-living situation right now, which can surely give you the opportunity to go back to school, but might also open up the opportunity to just focus on working and saving/paying down debt.  Only you can decide what the best answer is, but this shouldn't be the only option you consider.