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You are here: Home / News / Origination Fee Changes for Direct Sub/Unsub, Parent PLUS, and Grad PLUS Loans

Origination Fee Changes for Direct Sub/Unsub, Parent PLUS, and Grad PLUS Loans

Due to the government sequester that went into effect on March 1, 2013, Direct Sub/Unsub, Parent PLUS, and Graduate PLUS loans first disbursed on or after October 1, 2018 and prior to October 1, 2019 will have a new origination fee. This will include any loans not already disbursed and any new loans awarded after this date.

The loan origination fees are:

Table of Origination Fees by Loan and Date

Loan Program

Fees for loans disbursed on or after Oct 1, 2017 and before Oct 1, 2018

Fees for loans disbursed on or after Oct 1, 2018 and before Oct 1, 2019

Direct Subsidized/Unsubsidized Loans 1.066 percent 1.062 percent
Direct Parent PLUS Loans 4.264 percent 4.248 percent
Direct Graduate PLUS Loans 4.264 percent 4.248 percent

Actions to Take Before September 28th 

How Your Loans Will be Affected

  1. You will not be able to accept your Direct loan (subsidized/unsubsidized/ GradPLUS) from September 26th to October 8th (or at the point your sub/unsub loan is placed back on your record)
  2. Your disbursement(s) may be slightly delayed.
  3. Awarding of new loans will stop September 25th and resume October 2nd.

Follow Up Actions

Sub/Unsubsidized Loans:

  • If you have previously accepted your Direct loan but it has not yet disbursed prior to cancellation, then your loan will be automatically reinstated beginning October 8th and continuing for the next two weeks.
  • If you did not accept your Direct loan prior to the cancellation, it will not be reinstated. If you would like to request reinstatement of your loans, then please contact our office.

Parent PLUS and Graduate PLUS loans will not be reinstated.  A new application will be required at studentloans.gov - including the credit appeal process and the endorsement process, if necessary.

The PLUS application will not be available for Penn State students/families at studentloans.gov from September 28th through October 2nd. That will prevent us from having to cancel the loan which will cause you to have to re-apply.

Penn State Federal School Code

003329

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