Student Loan Origination Fee Update
The U.S. Department of Education recently clarified that student loan origination fee increases for Direct Subsidized and Unsubsidized loans and for Parent PLUS loans will take effect for loans first disbursed after July 1, 2013. Previously, schools had been informed that this change would take effect beginning March 1, 2013.
Due to sequestration, Subsidized and Unsubsidized origination fees will rise from 1% to 1.051% of the loan principle. Example: the origination fee for a $3500 loan will increase from $35 to $36.79. This represents an increase of $1.79.
Parent PLUS origination fees will rise from 4% to 4.204% of the loan principle. Example: the origination fee of a $5000 loan will increase from $200 to $210.20. This is an increase of $10.20.