<p>My D also used the USC credit union. As mentioned earlier, the rates on the Federal loans are consistant lender-to-lender. The USC credit union charges a 1% origination fee (a servicing + processing fee) for each loan, including those for continuing students. So if you were to borrow $3,500, you would be charged $35 in origination fees. </p>
<p>The fee comes out of your loan proceeds. In the $3,500 example, you would be credited 1/2 the total loan amount ($1,750) each semester, less the 1% fee for a credit of $1,732.50 each semester.</p>