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Are lenders still authorized to pay the origination fee on behalf of borrowers?

April 26, 2017authorized behalf borrowers fee lenders Origination pay

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Are lenders still authorized to pay the origination fee on behalf of borrowers?

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The legislation did not make any changes to the existing provisions regarding lenders paying origination fees on behalf of Stafford-loan borrowers. Regulations and common policy require that lenders assess the origination fee to PLUS-loan borrowers, however. See Common Manual subsection 3.5.A for additional information regarding the lender’s payment of the origination fee on behalf of the borrower.