<p>For loans with an initial (first) disbursement made on or after December 1, 2013, loan origination fees will increase. This is a result of sequestration - the first increase was last spring (up from 1% to 1.051% and 4% to 4.204%, respectively), and another increase is set for December:</p>
<p>As of October 1, 2013, the sequester increases the origination fees charged to Direct Loan borrowers beyond last year's increases. However, taking into account all of the underlying circumstances, including operational requirements, the new loan fee percentages will apply only with regard to loans where the first disbursement is made on or after December 1, 2013. The new loan fees are 1.072 percent for Direct Subsidized Loans and Direct Unsubsidized Loans and 4.288 percent for Direct PLUS Loans (both parent and graduate student PLUS Loans).</p>
<p>Note that if you have a loan that was paid out in fall, prior to 12/1, the second disbursement will have the original origination fee. This is for loans with a FIRST disbursement made on or after 12/1/13.</p>