All education loans, including federal and private student loans, allow for penalty-free prepayment. This means you can make extra payments to reduce the balance of the loan, or even pay off the entire balance early, without having to pay an extra fee.

Can I pay back my student loan all at once?

Yes, you can pay your student loan in full at any time. If you are financially able to do so, it may make sense for you to pay off your student loans early. Lenders typically call this “prepayment in full.” Generally, there are no penalties involved in paying off your student loans early.

Are there penalties for paying off a Perkins Loan early?

There aren’t prepayment penalties for paying off your loan early. While funding for Perkins loans comes from the government, your school or the school’s loan servicer collects student loan payments and helps you navigate repayment.

Are there penalties for prepaying a federal student loan?

No Penalties. Unlike some other loans, especially those from private lenders, a federal direct student loan does not incur penalties for prepayment. Once you are ready to start paying off your loan, you may do so as quickly as you like without having to worry about extra charges.

Can a student defer interest on a Perkins Loan?

You can defer Perkins loans for a number of reasons, including unemployment, economic hardship, cancer treatment and graduate fellowships. Contact your school’s financial aid office to discuss your options. Interest won’t accrue during Perkins loan deferment.

What’s the maximum amount you can get a Perkins Loan for?

The maximum loan amount was $5,500 a year for undergraduates and $8,000 a year for graduate students, though the amount you received was based on financial need and availability. The grace period for borrowers who graduated, left school or dropped below half time was nine months, compared with six months for other types of federal student loans.