For instance, I still have a relatively small 5-figure amount owed to Sallie Mae for student loans at 4.25%.
I can pay it off in full now, which would save me under $150 in interest and I'd be out the 5-figures up front, or I can continue to pay under $100 monthly over the next few years and pay that interest, but have this active, non-credit card loan on my report so as to show diverse credit. How much value, if any, is there to having this active on my report?
I know I can also invest the 5-figure sum now, with a decent likelihood that it will outperform the 4.25% over the period of the loan. I can also get creative and figure out how to get points and/or cash back for paying off the loan so that I end up saving more than the interest. My question is more about the value of having the active loan on the credit report, if any.