Don't pay the prepayment penalty. Just wait until the day after it will expire and pay it in full. 7% interest on a 1400 balance is only about $100 for the whole year, and you only have to wait a few months, so it is better to pay the interest rather than a penalty.
EDIT: Doublecheck your loan papers to make sure your loan doesn't use the Rule of 78s. If so, it could be frontloaded with interest and if you are early in the loan you might be better off paying the penalty (but I doubt it).
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