03.16.10 | The Pro and Con of Early Stafford Loan Repayment
You might be one of the lucky few who found a job right after graduation, and can afford to pay back your student loans immediately. First of all, stop bragging. The rest of us don’t want to hear it. But you might be considering early repayment. Is it worth it? Here are two things you must consider.
There is NO penalty for early repayment. You won’t be charged a fee or anything of the sort. In fact, early loan repayment can actually benefit you in the long run as it cuts down on your overall cost and can mean you pay less interest.
Early repayment will end your grace period. You are entitled to a six month grace period following graduation, during which time most folks consolidate their student loans and look to find a job or other means to start payment. If you decide to pay back your loans right away, you will be waiving your grace period.
NOTE: If you decide to attend graduate school, and take out loans for that, you will be entitled to a new grace period following completion.
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