Will it raise my credit score if I start paying the interest on my Stafford loan while I'm still in school?
Answer:
It won't really help you at all.
If you have no other credit at all, the only benefit would be that it would start your payment history.
The longer that you have a successful payment history the better your score.
But at this point the difference between starting to pay now and when you get done with school isn't really worth starting now and incurring the risk of you not being able to afford to keep paying then thus hurting yourself by getting late pays or no pays.
So the downside risk far outweights the little benefit you'd get right now.
Just make absolutely certain you don't over extend your self now and if you are making payments on some credit you already have be extra vigilant in making sure they get paid on time.
Don't think so - that stuff doesn't get reported. Missed payments, late payments, unpaid balances, too many "hits", too many open accounts, etc. - that's the kind of stuff that gets reported as negative.
Let the interest stay with the loan - you will end up refinancing and will have the payment for a while after school anyway.
Better to take that money and spend it on your education - books, etc. Or save it to buy a car when you get out! You will need it to drive to your interviews!
No, because student loans are differed until you are done with school. It's after you graduate or leave your payment schedule begins and they won't report any payments because technically you're not making payments on time. The only difference it would make is whether or not your loan was subsidized or not, meaning are they collecting interest on your loan or is the interests going to start adding up when you are done? Easiest way to raise your credit score is to get a credit card.use it on a regular basis and pay it off at the end of every month. Just having a credit does not help. If you have one.but don't use it, it'll actually reflect negatively. So go get a gas card.or a market specific card and when you go shopping use the card and pay if off quickly as to not leave a balance and gain interest collected. Another way is to buy a car.it's actually the quickest way, but if you're a first time buyer you're rates will be high so if you're a student I would recommend against it. But to answer your question.No it would not raise your score to start paying your stafford loan.sorry
no, put that money towards other outstanding debts (other credit cards, car payments, etc) before paying off the student loan. student loans have lower interest rates than credit cards and other loans (so it costs you less to hold onto that debt than your credit cards), and the interest is tax deductible (that's good). if you don't have any other debt, save it to pay off a huge chunk of the loan after you graduate, invest in a bank cd or mutual fund, or start a retirement account (or all 3).
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