Flickr user Rich Bowen
Most student loans, whether federal or private, come with origination fees. Processing a loan can be a long drawn out process with several hours spent gathering and organizing the necessary documentation, and verifying the accuracy of the information submitted. Lenders have to pay somebody to do all of this, and they recover the cost by tagging on origination fees to your loan amount.
A Fee By Any Other Name…
Some lenders may refer to these additional fees as application, processing, or underwriting fees, and they may be bundled into your loan in different ways but at the end of the day you have to pay it. No bank or lender is going to bear the cost of processing the loan from their own pocket.
When calculating the amount that you need to borrow and making your repayment plans, you must factor in the origination fees.
How to Potentially Reduce the Origination Fee
While you may not be able to waive the student loan origination fees completely, there are a couple of things you can do to minimize the amount you pay.
One way to do this is to shop around for your student loans. When inquiring about interest rates from different lenders don’t forget to also ask about the origination fees. Some lenders charge exorbitant processing fees and you do not want to find this out too late.
Negotiating with the lender won’t hurt either. At the most, they will say not but on the other hand, you may just get lucky and have to pay only a nominal amount.
Use College Raptor’s new Student Loan Finder to discover personalized loan options. Compare lenders and interest rates side by side—for FREE!
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
 |
3.70% - 8.75% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
