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Is there a penalty for repaying Direct Loans early?

April 26, 2017early Loans penalty repaying

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Is there a penalty for repaying Direct Loans early?

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10 Posted

• A. No. Students may prepay all or part of the unpaid balance on any Direct Loan at any time without penalty. Be careful to specify which loan they are prepaying. The Servicing Center will apply the prepayment first to any charges or collection costs, then to interest, and last to principal.