There are no pre-payment penalties on any of the Federal Loans or University / Institutional Loans offered through Brown. This means borrowers may begin early if they choose and pay the loan in full early with no penalties.

Interest does not accrue on most loans during school or grace period. The Direct Unsubsidized Loan and PLUS Loan are the exception to this, and interest does accrue during this time. Making payments during a grace period is a good way to reduce the overall loan balance since payments are applied directly toward the principal balance for any subsidized loans (Direct Subsidized, Perkins, and all Brown University Institutional Loans).

 9-month grace period; begins when enrollment ends or drops below half-time status:

• Federal Perkins Loans

6-month grace period; begins when enrollment ends or drops below half-time status:

• Federal Direct Subsidized Loans and Unsubsidized Loans
• Brown University institutional loans including Brown 20th Century Loans, Brown University Loans, Casperson Loans, Ellwood Loans, Kaplan Loans, Medical Loans, Plitt Loans, Tarandi Loans

4-month grace period; begins when enrollment ends or drops below half-time status:

• Brown University Urban Education Policy Loans and Brown University Urban Education Teacher Loans

No grace period; repayment begins within 60 days of loan disbursement but may be postponed with deferment while the student is enrolled:

• Federal Direct PLUS Loans - may apply for deferment
• Federal Direct Graduate/Professional PLUS Loans - will receive automatic deferment while the student is enrolled and for 6-months following enrollment ending or dropping below half time status