Skip to content. | Skip to navigation

Personal tools
Log in

Navigation

You are here: Home / 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, 2019 and prior to October 1, 2020 will have a new origination fee. This will include any loans not already disbursed and any new loans awarded after this date.

Loan origination fees:

Table of Origination Fees by Loan and Date

Loan Program

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

Fees for loans disbursed on or after Oct 1, 2019 and before Oct 1, 2020

Direct Subsidized/Unsubsidized Loans 1.062 percent 1.059 percent
Direct Parent PLUS Loans 4.248 percent 4.236 percent
Direct Graduate PLUS Loans 4.248 percent 4.236 percent

Actions to take prior to September 26

How your loans will be affected

  1. You will not be able to accept your federal direct loan (subsidized/unsubsidized/ GradPLUS) from September 26 to October 2 (or at the point your sub/unsub loan is placed back on your record). 
  2. Your federal loan disbursement(s) may be slightly delayed.
  3. Awarding of new federal direct loans will stop September 24 and resume October 2.

Follow Up Actions

Federal Direct Subsidized/Unsubsidized Loans:

  • If you have previously accepted your federal direct loan and it has not disbursed prior to cancellation, your loan will be automatically reinstated after October 2. Please note: due to the number of student records affected, this process may take up to 2 weeks.
  • If you did not accept your federal 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 after October 2.

Federal Direct PLUS Loans:

  • Parent PLUS and Graduate PLUS loans can 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 26 through October 2. This will prevent us from having to cancel the loan which will cause you to have to re-apply.
Tags:
calculator

Action Steps to Aid

fafsa

FAFSA

timeline

 Timeline

lionpath

LionPATH

tutorials

Tutorials

calculator

Aid Calculator

calculator

Money Manager

calculator

Loan Repayment