Is it best to make regular payments on student loans- or pay it in a couple large sums?
This year I will have 2 student loans to make payments on at the same time. It would be nice if I could pay one off. However, I heard that it is better for your credit to pay the regular monthly payments than to pay it off quickly. I also heard that it will look bad to the IRS if they see I all of a sudden pay off a loan that I had deferred in the past (they will wonder where the money came from).
One of my loans I have been making payments on for almost 3 years. The other loan I have had deferred for the past 3 years and received a notice that I will have to start paying it this spring.
Can anyone offer me advice of the best way to handle loans.
I think you should have the loans consolidated, it will work out better for you to only have 1 monthly payment and it is ok to make a nice down payment on the loan once consolidated.
