Are there fees associated with Direct Student Loans? 

  • ​​Yes: All Federal Direct Loans are assessed a loan fee by the federal government.

    This fee helps reduce the cost of making low interest loans. The federal government will deduct the fee from the loan before the borrower receives any loan funds; therefore, the loan funds received by the borrower may be less than the amount they will repay. 

  • Current Federal Direct Loan Fee: 1.069% after October 1, 2016