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If I pay my student loan in full to a collection agency, what shows on my credit?



If I make full payment on my defaulted student loan, through a collection agency, what will show on my credit? What is my best option if I can afford to pay off the loan but I want to protect my credit record?

I would pay it in full but negotiate with them. Tell them I will only pay if you remove all negative data from my credit report. Get it in writing.
Unfortunately, it's already too late to protect your credit score. All of the payments you missed are a part of your credit history. So is the fact that the loan went into collections. These items will likely remain on your credit report for seven years.
It will show paid in full. Any delinquency still shows but that's the best you can do for damage control. Collection agencies are notorious for reporting delinquencies but not payoffs. You need to follow-up. Personally, I don't use credit so I don't worry about my score. If you go that direction, the agency will settle for less. Your report shows 'settled' instead of 'paid in full' but you can save a lot of money. For more, go to daveramsey.com.
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