Grad Plus Origination Fee Forum

[mango26]

If I am borrowing 20k Grad Plus for this year and the origination fee is 4%, does that 4% get taken out of that 20k I qualified for. So I would be receiving $19,200? Or does it get added to the principle??
Trying to plan my fall budget, and I wasn't sure how this worked...

[bgdddymtty]

They're taken out of the nominal loan amount, so you would receive the $19,200. I don't know if all schools note this on their sample cost of attendance budgets, but mine does.

[klt7560]

That's correct. I think the Grad Plus origination fee is actually 2.5% though (4% - 1.5% rebate) so you would recieve $19,500.

[mango26]

That's correct. I think the Grad Plus origination fee is actually 2.5% though (4% - 1.5% rebate) so you would recieve $19,500.

Oh ok. I was wondering if that 1.5% rebate applied now or later.
Thanks