Due to the continuing federal budget sequester, loan origination fees paid by borrowers will increase for the Federal Direct Subsidized Loans, the Federal Direct Unsubsidized Loans, and the Federal Direct Parent Loan for Undergraduate Students (PLUS) Loans effective October 1, 2014.
For Federal Direct Subsidized and Unsubsidized Loans whose first disbursement occurs on or after October 1, 2014 and before October 1, 2015, the loan origination fee will be 1.073 percent. For Federal Direct PLUS Loans for parent, graduate, and professional student borrowers whose first disbursement is on or after October 1, 2014 and before October 1, 2015, the loan origination fee will be 4.292 percent.
Since Harvey Mudd College will be making the first loan disbursement for the fall 2014 semester during the week of September 16, 2014, prior to this change taking effect on October 1, 2014, this increase in loan origination fees will not affect current Harvey Mudd College borrowers who have completed all their loan requirements and forms. However, current Harvey Mudd College borrowers who expect their first loan disbursement in the spring 2015 semester will be affected by this increase in loan origination fees.
If you plan on borrowing and/or have outstanding loan requirements, you must notify our office and complete these requirements as soon as possible to ensure you are not affected by the increased loan origination fees.