Pay off student loans?

[monkatom]

Hello filled BK and discharged May 2008. Decided to let house go as we did not reaffirm. Plan in two years to have 20-30% down and see if we can get a new lower home loan.
My question is should I pay off student loans or are they helping with my credit score rebuild? My loans are about 14,500 and I pay about 180 a month. Not sure if loans will help or hurt my chance to get a loan. We make 130K and would get a loan at no more than 25% of gross most likely even less.
Thanks

[Trixie007]

Yes, having an active tradeline (ie student loans) with a positive pay history will help you rebuild your credit. Most lenders look for 2-3 active tradelines with 1-2 years positive pay history when financing a home with the more favorable terms.

There's nothing that says you can't set aside the money to pay off those student loans and pay the remaining balance around the time you buy a new house though!

[Faith]

Hello filled BK and discharged May 2008. Decided to let house go as we did not reaffirm. Plan in two years to have 20-30% down and see if we can get a new lower home loan.
My question is should I pay off student loans or are they helping with my credit score rebuild? My loans are about 14,500 and I pay about 180 a month. Not sure if loans will help or hurt my chance to get a loan. We make 130K and would get a loan at no more than 25% of gross most likely even less.
Thanks

My family is a bit over two years post-discharge. We're exploring a VA loan since we could buy and pay about what we pay in rent now, maybe a bit less. We've done nothing to re-build our credit other than to pay everything on time, no credit cards for example.

The lender pulled our scores and they're in the 670 to 680 range. The lender felt our long history of paying our student loans on time explained why they were as high as they were.

So I'd say the student loans are likely helping you more than hurting you.

[Logan]

I was discharged in Sept. 2007 and only have Credit Cards with a mid FICO of 686. If it's going to save you money then pay off the student loan.

Logan

[monkatom]

Thanks for all the responses. I will run the numbers of how much I will pay interest etc. It is pay the 14K on loans or use that plus a bunch more for a down payment on a house in a couple years.
Thanks