When can you pay back an unsub loan

<p>My daughter got sub and unsub loans as well as a large Perkins loan. I was hoping to avoid the unsub loan because of the interest but the school requires that she take all offered sub and unsub loans before accessing the Perkins. I'm wondering when is the soonest we can pay back that unsub loan so as to not incur a lot of interest.</p>

<p>Thanks!</p>

<p>Rachelfran, hopefully Kelsmom or someone else well versed in how the Staffords work can answer this more precisely. I do know that you can pay the interest on the unsub loan as it accrues because I know a lot of people who do that. How, the prepayment would work, I don’t know because sometimes when you start paying back the principle, the payment is put towards the entire Stafford, sub and unsub, I don’t know if that would be the case for a such loans taken out today.</p>

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Hmm. Didn’t know about that twist. We are paying off the interest on the unsub loan for DD2 now to keep it from accumulating. That’s not hard.</p>

<p>you can pay back the principal at any time. Just make your instructions clear as to which account/loan the payment applies. There are no prepayment penalties.</p>

<p>You can call the lender’s servicer and request a full payoff amount. They may even offer to debit your bank account that day.</p>