Student Loan Fees

Federal law allows two different fees to be charged on FFELP loans.

Origination Fee = 1.5% of the loan amount through June 30, 2008; for loans first disbursed on or after July 1, 2008, the fee reduces to 1%

Federal Default Fee = 1% of the loan amount; however, for loans guaranteed by the MDHE on or after July 1, 2008 when the school of attendance is a Missouri institution, the MDHE will pay the 1% fee on behalf of the borrower

Your lender will deduct the fees from your original loan amount then send the remaining loan amount to your school. You are responsible for repaying the entire original loan amount (i.e., the amount before the fees were subtracted).

QUICK TIP: Some lenders and servicers may pay all or a portion of the fees. Talk to your school's Financial Aid Office for participating lenders or review the MDHE's online lender list.