Updates to Direct Loans Origination Fees!

Friday, April 5th, 2013

Effective March 1, 2013 due to an automatic process of “across-the-board” Federal budget cuts, known as the sequester, loan fees paid by borrowers will increase for the Federal Direct Subsidized Loans, the Federal Direct Unsubsidized Loans, and for the Federal Direct Parent Loan for Undergraduate Students (PLUS) Loans.

For Direct Subsidized and Direct Unsubsidized Loans where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 1 percent of the principal amount of a loan will increase to 1.05 percent.

For Direct PLUS Loans for both parent, graduate, and professional student borrowers where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 4 percent will increase to 4.20 percent.