<p>My son has been offered an unsubsidized Stafford Loan. Do these loans typically have origination fees? If so, how much? Is the interest rate the same nationwide?</p>
<p>Are the Staffords taken out directly through the school, or can you arrange the loan youself and try to get a better deal on the interest rate and/or origination fees?</p>
<p>TIA,
mom6350</p>
<p>The answers to your questions depend on which Stafford program the school uses, Direct Lending or FFELP. Direct Lender schools go directly through the government - students have to pay a relatively small origination fee - the process is as simple as 1,2, 3. 1) Accept the loan through the school (online or by mail), 2) complete entrance counseling (usually done online), 3) sign a Master Promissory Note (again, usually online). The loan will pay to the student’s account when the school disburses aid for the semester.</p>
<p>FFELP schools require the student to find a lender. Some schools will offer lender options as a convenience, but students may use a lender of their choice. FFELP lenders charge varying fees, but the fees are small. My D has a FFELP lender - once we chose the lender, the process was more or less like the Direct Loan process - pretty simple.</p>
<p>The interest rate on Stafford loans is the same no matter who you borrow through. Unsubs are 6.8%, with interest accumulating from the time the loan is disbursed. We pay our D’s interest quarterly - you can just let it accumulate, but then the student owes interest on the interest.</p>