<p>I'm filling out a electronic Master Promissory Note (e-MPN) through the NY HESC site. I'm filling it out for a subsidized Stafford loan of $2,625 as a Freshman entering Fordham University. The last question it asks me:</p>
<p>"12. I want to pay unsubsidized interest while I am in school." Next to this question is a Checkbox that is originally unchecked.</p>
<p>Do I check this or not? I mean from what I understand I'm not supposed to pay any interest while I'm in school because the government covers that. I understand that 6 months after I graduate, I will have to pay interests on the loan, but that's not what this question is asking. If someone could help with this one question I could fill out the e-MPN right now. I want to get this out the way.</p>
<p>Btw I have another question. Does anyone know if I can start paying off student loans while I'm in college. My mom and I have talked about the loans I'll be taking out and she plans on taking her income tax refunds each year to help me payoff my student loans. This will allow me to lower my principle so I could pay things off quicker. I just don't know if I can start paying off the loans while in school. I hope there's no rule that says I can't pay while in school.</p>
<p>Don't check the box because you are not paying interest (you are sure it is subsidized, right?)
You should call the lender directly about paying it off early, but why would you want to? You are paying no interest. Put the tax refund money in a saving account, earn a little bit of interest, and then when you graduate put it all towards the principal.</p>
<p>Thanks. I asked a couple of other people to confirm and they said the same thing. I just left it unchecked and filled out the rest of the application. I don't know what's supposed to happen next but I figure I'll get some kind of note in the mail or something that takes me through the steps.</p>
<p>You did the right thing by not checking the box that way you always have the option to either pay interest or pay down your principal or not. </p>
<p>Stafford Student Loans are simple interest loans - the rate is set by the feds and, by the way, is going up as of July 1st -- anyway --- there are no prepayment penalities so you can pay anything you want whenever you want - the only problem you will face is the lender or person handling your loans will be confused as to what you are doing so your biggest headache will be to explain why you want to pay on your loan before you have to. </p>
<p>I agree with previous comment - just save the money and let it earn some interest for you - since the interest rate on this loan will be 6.8% you will have to decide if your money can earn more somewhere else or if you should just prepay your student loan? IF you decide to prepay your loan DO NOT waive your grace period - that is the six month period after you graduate before you are required to make principal and interest payments on your loan -- you are simply PREPAYING on your loan -</p>