Can I Start Paying Off My Federal Direct Subsidized Student Loan?
I can manage to pay off some of my loan even though I’m still in school…am I allowed to do this? Will it have an affect on me getting the same type of loan in the future? Anything else I should be aware of?
Pinkee said
am May 23 2009 @ 3:19 am
You can absolutely do that, however, if I were you and were still a student, I would hold out on paying a subsidized loan. Subsidized loans do not increase with any interest while you’re in school, but it is the UNsubsidized that does. There are no setbacks from having loans while applying for next year’s loans… they understand you’re in school. A.)You can allow the money that you have to sit in a savings account ’til you graduate or B.) use it for text books C.) Pay off the loan “just because…”
altaira_ said
am May 23 2009 @ 4:21 am
Yes. That is allowed. There is no early payment penalty for federal loans. It won’t affect any future eligibility.