Mid-year changes to Direct Lending Origination Fees
ALERT: Due to the ongoing implementation of Congress' Budget Control Act (BCA) of 2011, which put into place the "sequester" (automatic across-the-board federal budget cuts). The sequester mandates that the origination fees are increased as follows for Direct Stafford Loans.
The increased origination fee applies to Direct Stafford Loans whose 1st loan disbursement is made on or after December 1, 2013. Fees vary by loan type. The increased origination fees effective December 1, 2013 are:
- Direct Stafford Student Loans: 1.072% fee
- This loan origination fee of 1.072% is deducted from the Direct Stafford loan funds at the time of each disbursement.
- For loans first disbursed from July 1, 2013 to November 30, 2013, the origination fee is 1.051%.
- Direct Parent PLUS or Grad PLUS Loans: 4.288% fee
- This loan origination fee of 4.288% is deducted from the Direct PLUS loan funds at the time of each disbursement.
- For loans first disbursed from July 1, 2013 to November 30, 2013, the origination fee is 4.204%.