Does a Federal Direct Stafford Loan have any fees?
Yes, both subsidized and unsubsidized Direct Stafford Loans have a 1% origination fee with an upfront rebate of 0.5%, resulting in a net origination fee of 0.5%. A student borrower is able to keep the rebate if, once s/he enters repayment, the first twelve monthly payments are made on time. If the borrower fails to make twelve payments on time, the rebate fee is added to the principal of the outstanding loan balance.
Related Questions
- Must a school determine a students eligibility for a subsidized Federal Stafford Loan before determining a parent borrowers eligibility for a Federal PLUS Loan?
- In scenario 1 above, how is the second disbursement of the Federal Stafford Loan treated?
- What is the difference between a Federal Stafford Loan and a Private Loan?
