Key Takeaways If you pay off your student loans, your credit score might go down a little. Fortunately, the dip is temporary. For most people, saving a fortune in interest and improving your debt-to-income ratio is far more important than worrying about a few points of your credit score. If you're like this letter writer, and you've come into a large sum of money, you might be thinking about paying off your debts, like your student loans. Even though you'd be freed from monthly payments and save pot ...