<p>I have a question about the fee for loans. For example, look at the Stafford lender list for UCLA from the last academic year ([UCLA</a> Financial Aid Office - Stafford Loan Lender List](<a href=“http://www.fao.ucla.edu/stafford_loans_0809.htm]UCLA”>http://www.fao.ucla.edu/stafford_loans_0809.htm)). Some lenders have a 2% fee (1% origination fee and 1% default fee), while others have just a 1% origination fee. Wouldn’t one always choose a lender with a 1% fee? Sure, there are other minor differences between lenders in terms of incentives and stuff down the line; but those are all kind of conditional, whereas a fee they always just take directly out of your principal; and 1% difference is a lot. So shouldn’t the fee trump other considerations? Or am I missing something?</p>
<p>Some lenders have:</p>
<p>0.25% reduction in the rate for Automatic Payments.
Some offer principal reduction.</p>
<p>Upfront fees are just one part of the equation.</p>