You should see a score increase due to your overall utilization dropping significantly and since you have another installment loan present you wouldn't get dinged for the student loan being closed.
FICO likes one open loan. Long as 1 stays on your report your good. But the new util % as a lonely loan will kick in.
@krmurrayjr10 wrote:I am one of the 800,000 student loan borrowers who received the e-mail that their outstanding loans will be forgiven in the coming months, based on the number of months their loans were in repayment.
My question pertains to the effect on my credit score once the loan balance shows $0. I understand that a borrower might see a small drop in score if the forgiven loan was the only installment loan.
It seems to me, though, that I am looking at a different scenario for a couple of reasons. One reason is that I will still have one other open installment loan.
The other reason pertains to the student loan balance. I am surely not the only borrower whose outstanding balance is higher than the original balance, thanks to income-based repayment and capitalized interest. In my case, the original balance was about $35k and the current balance is now about $59k.
In this case, could I anticipate a score pickup given the substantial and abrupt change in the amount owed over amount borrowed ratio?
For what it‘s worth: I have 0 negative information anywhere on my report, maximum of 1-2 inquiries, and most accounts are at least 2 years old. The other installment loan is about 25% paid.
I don't think there will be any effect from the change in installment utilization. I imagine you'll be going from something like 90% to 75%, not a big thing in FICO scoring.
But you might pick up a few points from having one less account with balance.
And apart from scores you'll be a more attractive credit candidate because your DTI will improve.
I must say, though, that even if you do experience a slight dent in your FICO scores, who cares? 
You are so fortunate to get rid of that loan.
