Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Are there any fees attached to any of the Federal loan programs?

April 26, 2017attached Federal fees loan Programs

0

Posted

Are there any fees attached to any of the Federal loan programs?

1 Answer

0

Posted

Yes. There are two fees that may be deducted out of the funds borrowed. One is an origination fee that is mandated by Federal law. The fee is 1 percent of the principal amount of the loan. This fee will be reduced one-half of a percent every year until July 1, 2010. The other fee is an insurance premium or guarantee fee. This fee is also set by Federal law and may not exceed 1 percent of the principal amount of the loan. These fees apply to both Federal Family Education Loan Program (FFELP) loans provided by private lenders. Check with your lender or guarantor to see if these fees are waived.