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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, 2017 and prior to October 1, 2018 will have a new origination fee. This will include any loans not already disbursed and any new loans awarded after this date.

For more information on the regulation you can visit Federal Student Aid.

The loan origination fees are:

Table of Origination Fees by Loan and Date

Loan Program

Fees for loans disbursed on or after Oct 1, 2016 and before Oct 1, 2017

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

Direct Subsidized/Unsubsidized Loans 1.069 percent 1.066 percent
Direct Parent PLUS Loans 4.276 percent 4.264 percent
Direct Graduate PLUS Loans 4.276 percent 4.264 percent

 

How Your Loans Will be Affected

  1. You will not be able to accept your Direct loan (subsidized/unsubsidized/ GradPLUS) or your Alternative Loan using LionPath from September 27th to October 6th.  Please contact our office if you need to accept an alternative loan during this time.
  2. Your disbursement may be slightly delayed. Disbursements on any federal loans will stop the night of September 29th and resume October 6th.
  3. Awarding of new loans will stop September 25th and resume October 6th.

 

Follow Up Actions

Sub/Unsubsidized Loans:

  • If you have previously accepted your Direct loan but it has not yet disbursed, then your loan will be automatically reinstated beginning October 6th.
  • If you did not accept your Direct loan, 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.

Penn State Federal School Code

003329

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