Prepayment

You may prepay without penalty all or any part of the loan principal and accrued interest during the grace period or at anytime before a payment becomes due during the repayment period. The advantage is that your extra payment amounts will be applied directly to the principal balance, decreasing your principal balance. This, in turn, reduces the total interest you will be charged over the life of your loan. During the repayment period you may include an extra amount with any regular payment. The extra amount will be applied to your principal balance. Though you may include an extra amount, you must continue to make your payments by the monthly due date.

However, if you want to make monthly installment payments in advance, you must attach a note to the payment that asks SFC staff to use the extra amount to prepay your monthly installments and send it directly to SFC (in 20 Fraser Hall). SFC will apply the extra payment amount to future installments until the remaining balance is insufficient to cover an installment amount. In other words, extra amounts are not considered advance installment payments, unless you specify in a written note that the amount is a prepayment of future installments and send the payment, with the note attached, directly to SFC in 20 Fraser Hall.