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 fees associated with borrowing Stafford Loans?

April 26, 2017associated Borrowing fees Loans Stafford

0

10 Posted

Are there fees associated with borrowing Stafford Loans?

1 Answer

0

10 Posted

YES, the lender may charge a fee for originating and guaranteeing the loan. These fees help pay the cost of processing your loan and protect the lender from loss if a student is disabled and unable to repay the loan. Unlike the interest rates, the fees can vary from lender to lender. They can charge up to 3.5% for origination and guarantee fees.