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What are the fees and rebates for Direct Loans?

April 26, 2017fees Loans rebates

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What are the fees and rebates for Direct Loans?

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Origination Fees for Direct Subsidized and Unsubsidized Loans are 1.5% for loans with first disbursement between 07/01/2009 and 06/30/2010 and 1% for loans with first disbursement date on/after 07/01/10. Origination Fees for Direct PLUS Loans are always 4%. Department of Education also offers an interest rebate to Direct Loan borrowers. Rebates for Direct Subsidized and Unsubsidized Loans are 1% for loans first disbursed between 07/01/2009 and 06/30/2010 and 0.5% for loans disbursed on/after 07/01/10. Rebate for Direct PLUS Loans is always 1.5%. NOTE: Interest rebate is applied at the time your loans are disbursed (reducing the amount of fees charged). In order to remain eligible for the rebate, the borrower must make 12 consecutive, on-time payments once loan goes into repayment otherwise the rebate amount is added back to the loan balance owed.