<p>Do I understand correctly that the unsubsidized Stafford carries an origination fee (points) of a little over 1%? And the Paent Plus loan has points of about 4%, which is the equivalent of paying about 4% interest, right off the top, even if you pay the loan principal back rather quickly?</p>
<p>Yes, that is correct. For loans first disbursed before October 1, 2014 origination fees are as follows: subsidized and unsubsidized Stafford, 1.072%; Parent and Graduate PLUS, 4.288%. The fee changes for loans first disbursed on or after October 1, 2014 due to the lingering effects of sequestration: subsidized and unsubsidized Stafford, 1.073%; Parent and Graduate PLUS, 4.292%. The money is never paid to the student … the student receives a net disbursement (net of the fees) but owes the gross amount borrowed.</p>