How to pay off student loan in advance? Detailed steps and precautions
Student loans from the place of origin are important financial support for many students to complete their studies, but as the economic situation improves, many people hope to pay off their loans early to reduce interest payments. This article will introduce in detail the process, precautions and related data of early repayment to help you complete repayment efficiently.
1. Basic conditions for early repayment
1. The loan has been disbursed and repaid normally for at least 12 months.
2. A written application must be submitted to the lending bank 15 days in advance.
3. The remaining principal and current interest must be paid off in one lump sum.
| Loan type | Early repayment liquidated damages | Application lead time |
|---|---|---|
| National Development Bank Student Origin Loan | none | At least 15 working days |
| Commercial bank student origin loan | 0.5%-1% of remaining principal | At least 30 calendar days |
2. Detailed process of early repayment
1.Check repayment amount
Log in to the student loan system of the student's place of origin or call customer service to check the current repayable principal, interest and liquidated damages (if any).
2.Submit application
Submit an early repayment request through one of the following methods:
- Online system submission
- Go to the county-level subsidy center to apply
- Send written application by mail
| Application method | processing time | Materials required |
|---|---|---|
| Apply online | Within 3 working days | Electronic version of ID card |
| Apply offline | 5-7 working days | Original ID card, loan contract |
3.Fund preparation
Deposit sufficient funds into the repayment account before the designated repayment date. Note:
- You need to deposit an extra $100 to prevent differences in interest calculations
- Make sure the account status is normal
4.Confirm repayment
Check the repayment status within 3 working days after repayment, and keep the repayment voucher for at least 2 years.
3. Precautions for early repayment
1.Time selection
It is recommended to repay the loan before August of the year of graduation to avoid post-graduation interest. Take 2023 as an example:
| Repayment time | Interest calculation | Example of saving interest (loan of 8,000 yuan) |
|---|---|---|
| Before July 31, 2023 | Interest only while in school | Save about 1200 yuan |
| After September 1, 2023 | Start calculating graduation interest | No savings |
2.Impact on credit reporting
Early repayment will show "early settlement" on the credit report. This is a positive record and will not affect your credit score.
3.Tax refund benefits
According to current policies, interest on loans from the place of origin can be deducted from personal income tax, with a maximum annual limit of 12,000 yuan.
4. Frequently Asked Questions
Q: Is partial early repayment possible?
A: Most loans from the student's place of origin require one-time repayment, and some commercial banks allow installments, but each payment must not be less than 5,000 yuan.
Q: How to get the voucher after repayment?
A: The bank will mail the settlement certificate within 15 working days after the repayment, and you can also download the electronic version through the online system.
Q: What should I do if my repayment fails?
A: Contact the local funding center immediately to verify the account information and then reinitiate repayment. Generally, no additional fees will be incurred.
5. Reference for the latest repayment data in 2023
| area | Average prepayment amount | Processing time limit | Consultation hotline |
|---|---|---|---|
| Beijing | 32,000 yuan | 10 working days | 010-12345678 |
| Guangdong Province | 28,500 yuan | 7 working days | 020-12345678 |
| Sichuan Province | 25,000 yuan | 12 working days | 028-12345678 |
Paying off your student loan in advance can not only reduce financial pressure, but also cultivate a good credit history. It is recommended to make reasonable plans based on your own economic situation. If you have any questions, contact the local education department or lending bank promptly to obtain the latest policy information.
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