18 Aug Can You Be Penalized for Paying Off Student Loans Early?
Many people graduate college with debt and struggle to keep up with their student loan payments once they have a degree in hand. But what if you find yourself in the opposite position? What if you're able to pay off your student loans early? Is doing so a smart idea, or will you incur penalties for knocking out that debt sooner?
Paying your student debt early
Let's start with the good news: There are no penalties associated with paying off student debt early. This applies whether you took out federal loans or private loans. Either way, you have the option to pay off your debts ahead of schedule with one lump sum, or to put extra money into your monthly loan payments.
Should you pay off your student loans early?
Although you won't be penalized for getting rid of your student debt early, whether it makes sense to go that route will depend on your bigger financial picture.