What are the loan fees listed on the award notification?
All Federal Direct Loans are assessed a loan fee by the federal government. The federal government will deduct the fee from the loan before the borrower receives any loan money; therefore, the loan funds received by the borrower will be less than the amount they borrow and repay.
On the award notification there is a Loan Fees category. These are federal loan fees that are not charged or billed to you by Shiloh University. If you choose to accept the loans offered, the loan fees will be deducted from your federal loan proceeds.
For example, a student borrows a $3,500 Federal Direct Subsidized Stafford Loan for the 2016-2017 academic year and funds are disbursed after October 1, 2016. Subtract the 1.069% loan fee ($37.42) from $3,500. The net amount of loan funds the student will receive is $3,462.58.nnThe Federal Direct Loan Servicer will mail, to the borrower, a disclosure statement indicating the exact loan terms. Currently loan fees are as follows:
- Stafford Loan: 1.069% for loans disbursed October 1, 2016– September 30, 2017
- PLUS Loan: 4.276% for loans disbursed October 1, 2016– September 30, 2017