Is there a prepayment penalty to pay off my refinanced student loan? December 16, 2021 02:28 Updated No. There is no prepayment penalty if you decide to repay part or all of your loan ahead of schedule. Related articles How can I lower my payments on my refinanced loan? What is the repayment term for refinancing? What is the repayment term? What happens if my visa or OPT expires and I need to leave the US? Do I have to reside in the U.S. to be eligible to refinance my loan?