Because the Budget Control Act of 2011 (the sequester law) remains in effect, sequester-required changes for Federal fiscal year 2017 will be required as has been the case in the past several years. By now, schools should have updated their Financial Aid Management Software to calculate the correct origination fee that goes into effect on October 1st.
The loan origination fees on all loans where the first disbursement is made on or after October 1, 2016 will be:
- The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans is 1.069%.
- The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.276%.