Origination fee question

[clinicallabguy]

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How much of your money does an origination fee eat up? Is an 1.5% origination fee just 1.5% of the loan amount?

So, if my Stafford sub and unsub is the max at $20,500.....
my origination fees at 1.5% would be $307.50?

Is it that simple?

Enlighten the unlearned one.

 

[TMP-SMX]

You got it. You would just get $20,192.50 total from your two disbursements combined rather than the full amount. Why not go with Discover? They have no origination fee.

 

[clinicallabguy]

You got it. You would just get $20,192.50 total from your two disbursements combined rather than the full amount. Why not go with Discover? They have no origination fee.

I am currently looking into it. But, I won't get my money for an additional week or so if I don't choose one of my schools preferred lenders. That's not a huge deal I guess. But, what about consolidating loans after school if you have Stafford loans from different guarantors? There's no guarantee that discover will continue to offer these incentives next year, or the following years.

If I continue to go with the lowest fees every year then I'm afraid it will be a mess to consolidate it all if I have loans from multiple guarantors. Of course, I haven't been able to find an answer to this. People have written on SDN about how they think this may be true. But, I haven't seen anyone verify it.

Is it a headache to consolidate federal stafford loans that are serviced by different guarantors? If so, then I think it may be worth the $310 a year so that consolidating will be simple when I graduate.

Any thoughts?

 

[TMP-SMX]

There's no guarantee that any lender is going to give you the 0.25% rate reduction for autopayment in repayment. On the other hand, there is no way that Discover could take away their up front lack of fees.

As for consolidation, the terms aren't as sweet as they once were so consolidation won't help you as much. As for making multiple payments, you can easily just do autorepayment and forget about it.