Federal Sequester Impacts Federal Loan Origination Fees

Effective December 1, 2013 the Stafford origination fees are increasing from 1.051% to 1.072%. The Graduate PLUS and PLUS loan origination fees are increasing from 4.204% to 4.288%. This change effects new loans where the first disbursement occurs on or after December 1, 2013.

 

Direct Loan Program Loan Fee Amounts
Loan Type Impacted Loans Loan Fee Percent Fee on a Loan Amount Of
Direct Subsidized Loans and Direct Unsubsidized Loans First Disbursed Prior to  July 1, 2013  (No Sequester) 1.00 Percent $55.00 on a $5,500 loan
First Disbursed on or after July 1, 2013 and Before November 30, 2013 1.051 Percent $57.80 on a $5,500 loan
First Disbursed on or after December 1, 2013 and Before September 30, 2014 1.072 Percent $58.96 on a $5,500 loan
Direct PLUS Loans (Parent and Grad/Prof Student) First Disbursed Prior to  July 1, 2013 (No Sequester) 4.00 Percent $400 on a $10,000 loan
First Disbursed on or after July 1, 2013 and Before November 30, 2013 4.204 Percent $420.40 on a $10,000 loan
First Disbursed on or after December 1, 2013 and Before September 30, 2014 4.288 Percent $428.80 on a $10,000 loan
Loan fee calculations that result in more than two decimal points must be truncated to two decimal points (cents).

 

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