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Grad Plus Origination Fee

Posted: Sun Jul 25, 2010 6:00 pm
by 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...

Re: Grad Plus Origination Fee

Posted: Sun Jul 25, 2010 6:18 pm
by 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.

Re: Grad Plus Origination Fee

Posted: Mon Jul 26, 2010 10:43 am
by 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.

Re: Grad Plus Origination Fee

Posted: Mon Jul 26, 2010 11:49 am
by mango26
klt7560 wrote: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