If I take out a parent plus loan for tuition for junior year, and then add to it senior year, do I incur another 4% origination fee? Are these considered two loans or is senior year just added to the junior year loan?
The origination fee is a charge assessed each time you borrow a sum of money, and it’s based on the amount you borrow. That fee will reduce the amount of loan proceeds you receive, but you’ll owe interest on the full loan amount. If you borrow $10,000 your origination fee is $400. The amount you will receive is $9,600. The amount of the loan you must repay is the full $10,000.
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