The obvious answer to this would be "as soon as possible." No one likes living with debt, especially if they are unemployed or without any type of income. With that being said, it isn't the worst thing, from a credit standpoint, to pay off the debt over time. I am not going to pretend to be a financial adviser, but most would tell you that paying off debt on a gradual basis is a good thing for your credit. It shows lenders that you are a?"dedicated payer." This can help you in the future when you are applying for a mortgage or car loan. Paying your loans off gradually can also make sense if the interest rate is low. Most interest rates on student loans are quite low in comparison to other types of loans. Therefore, it may make more sense to hang on to the student loan, but pay off other obligations with higher interest rates.
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