Mai N asked:
I know that for loans, including fed. financial aid, students don’t have to start paying back until they are out of school and even then, there is a grace period. Is it possible to start paying back some of that loan while in school or do we have to wait until the grace period is over?
ARIEL
I know that for loans, including fed. financial aid, students don’t have to start paying back until they are out of school and even then, there is a grace period. Is it possible to start paying back some of that loan while in school or do we have to wait until the grace period is over?
ARIEL
MAXWELL
You absolutely can pay back your loans early. There is no penalty for prepayment and it looks great on your credit report. Contact your lender to find out how to make early payments.
Comment by DAMIAN — January 12, 2010 @ 1:23 pm
ISIDRO
Yes, most even suggest that you do start paying back early on at least the interests portions so that they do not capitalize and get turned over to principal. I have paid the interest portions every quarter (every 4 months) on all of my loans and it has helped me immensely. If you pay above the interests amounts, it will be dropped off of your principal amount and will lower the total you owe when you graduate. You most certainly can do this; there are no penalties for doing so, and it looks great on your credit report.
Comment by LEONARD — January 13, 2010 @ 7:06 am