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Are there any fees associated with using the Federal Direct Loan Program?

April 26, 2017associated Federal fees loan program

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Are there any fees associated with using the Federal Direct Loan Program?

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Yes. Just as you are currently charged a fee for your Federal Stafford Loan and Federal Plus loan through the FFEL Loan Program, the Direct Loan Program also charges an origination fee. Currently, for all Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans that are first disbursed on or after July 1, 2008 and before July 1, 2009, the origination fee is 2%. For all Direct PLUS Loans for both parent and graduate/professional student borrowers, the origination fee is 4%, regardless of the first disbursement date.