I have taken out five student loans, three quite small and two rather large. I have a ton of money left over from my last student loan, I overestimated how much I would need (I wound up getting scholarships) and I would like to pay down my student loan debt with what is left over.
All of my loans are Federal Stafford and are at a fixed 6.8%. With the money I have left over, I could pay off the smallest three immediately and then put the rest towards the larger loans. None of the loans have gone into repayment yet.
Question #1: Would paying off these three loans immediately be a bad idea? Does having 5 loans that I am paying off look better on my credit score than only having 2? Should I try to pay them all off over the same period of time, or get the small ones out of the way faster with larger payments?
It would be nice to only worry about 2 lenders instead of 5, however I do not know if having 5 open loans looks better on a credit report.
Question #2: Is it better to pay off your student loans over 10 years or 5 years? I would like to pay them off as soon as possible, maybe 3-5 years, since I would be paying about $ 500 in interest for every year I have my loans open. Although I would be paying extra, does having loans open longer look better to a credit bureau?
Thanks, I’m not very good with all of this. I have quite a few credit cards whose balances I pay every month, my credit score is very high. I like to stay out of debt, but I do want to maintain that score.
I’m getting my master’s this May, so I’m just about out of school. Thanks Julie!