I have $17k in student loans (4 of them, all Stafford less than 4.5%). My monthly minimum payment is under $200, and my employer contributes exactly $200 on my loans each month (regardless of minimum payment or principal balance).I have enough cash to pay the loans off completely (sitting in a savings account at 2%), but when the loans are paid off I lose the employer contribution.
Should I just wait until I leave this job and then pay off the entire loan balance, or should I pay off some of the loan to lower the interest payment so that more of the employer contribution goes to the principal balance? Does the effect on my credit score of closing the credit line sooner rather than later matter?
Usually $50-$60 of each payment goes to interest (depending on the length of the month?) and the other ~$140 goes to the principal of the highest-interest-rate loan.