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What are the penalties for early payment or if the loan is paid in full before scheduled (deferred) payments begin?
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Fixed interest rate - as low as 5.6%
- No payments while in school at least half-time
There are never early payment penalties for federal student loans. This is another great benefit of the Stafford Loan. Subsidized Stafford Loans do not accrue any interest while you are in school, so if you paid the balance in full before you graduate you will simply pay back the exact amount you borrowed.
Most students wait until they are finished with school to begin making payments. You will have a minimum amount due every month and there are never any penalties for paying more than that amount. If you over pay each month, you will pay your loan off sooner and therefore cut down on any interest that would have accrued.
Check out our financial aid forum to post questions and engage in conversation with peers and industry leading financial aid experts.
Stafford Loan Frequently Asked Questions
- Am I eligible for a Stafford Loan?
- How do I apply for a Stafford Loan?
- Are there Stafford Loan deadlines?
- What's the difference between unsubsidized and subsidized loans?
- When do I receive the Stafford Loan funds?
- What are the Stafford Loan interest rates?
- How much can I borrow under a Stafford Loan?
- What is EFC and how is it calculated?
- What can I use a Stafford Loan for?
- Are there specific schools that accept Stafford Loans?
- Why did I receive less than what I thought I would receive in Stafford Loan funds?
- Do I have to apply for a Stafford Loan every academic year?
- Can I receive a Stafford Loan if I have bad credit/declared bankruptcy/have late payments on credit cards?
- How can I bridge the financial gap between the total cost of education (including room and board, fees, books) and the amount of financial aid I was awarded?
- Will I pay any fees for a Stafford Loan?
- What are the repayment options for a Stafford Loan?
- What are the penalties for early payment or if the loan is paid in full before scheduled (deferred) payments begin?
- What are the Stafford Loan cancellation policies?



