The short answer is yes, you can pay off your loan early without any kind of penalties. One of the key advantages of a Fortify loan is your ability to pay it off early without incurring any prepayment penalties.
Why is it good to pay loans off early?
Loans accumulate interest over time. If you find yourself able to make early payments, paying off your loan balance ahead of schedule is a powerful way to provide financial relief. It lowers the amount of interest you pay over time, and lets you free up funds that you can redirect towards other financial goals, like saving for a home, investing, or building an emergency fund.
Early payment of your student loans can also positively affect your credit score by demonstrating financial responsibility. If you take future loans out for expenses like a house or car, having a better credit score makes that credit cheaper, which would also save you money in the long run.
Why do some lenders charge penalties?
Because paying off a loan early means that your lender doesn’t collect as much interest, some lenders will charge penalties or fees if borrowers make early payments, to make up for the interest that they’re no longer collecting off of you.
At Fortify, we strongly believe that what’s best for you is best for us. If you’re able to make early payments, and you want to take advantage of the benefits like reducing your interest burden and increasing your credit score, we encourage you to do so. Fortify does not charge any prepayment penalties or fees.