August 4, 2010

Origination Fee Reduction Reminder

In a Feb. 4, 2010 Electronic Announcement, ED announced a reduction of the origination fee for Direct subsidized and unsubsidized loans for 2010-2011. The announcement provides operational guidance for schools and third party software providers on implementing the latest fee reductions.

In the past few months, many Direct subsidized and unsubsidized loan awards were rejected because the correct origination fee was not included and/or was not used to calculate the award and disbursements. The electronic announcement offers the information needed to ensure awards aren’t rejected.