Origination Fee
An origination fee is a processing fee retained by the U.S. government for federal loans (Federal Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS Loans). The fee is a percentage of the amount of the loan and is deducted before the loan disburses, or pays to the student's account. Due to these fees, the loan amount accepted and borrowed will be different from the amount that disburses.
Fees for the current aid year can be found on the Federal Student Aid Federal Interest Rates and Fees webpage. Fees vary based on the date the loan disburses for the aid year.
Loan Amounts
Students can view any offered or accepted Federal Direct Loans in the Financial Aid Information section of the WVU Portal. Once the loan disburses, they can view the amount disbursed as payment on their account after federal student loans disburse and view their total loan debt updated on their Federal Student Aid account. Please note that due to the origination fee, these two numbers will be different.
The loan amount that may be listed in the student's financial aid offer in their Financial Aid Information is the gross amount for the full year, and the amount that pays towards their charges, which they will see in WVU MyAccount's Account Activity, is the net amount for that semester after the loan origination fee has been deducted.
Examples
If $2,750 of a Direct Subsidized Loan is borrowed for one semester:
- $2,750 is the gross loan amount in their Financial Aid Information
- $2,720 is the net loan amount that will disburse to their WVU MyAccount (gross amount minus the origination fee)
If $1,000 of a Direct Unsubsidized Loan is borrowed for one semester:
- $1,000 is the gross loan amount in their Financial Aid Information
- $990 is the net loan amount that will disburse to their WVU MyAccount (gross amount minus the origination fee)
If $5,000 of a Direct PLUS Loan * is borrowed for one semester:
- $5,000 is the gross loan amount in their Financial Aid Information
- $4,788 is the net loan amount that will disburse to their WVU MyAccount (gross amount minus the origination fee)
*Both Graduate PLUS Loans and Parent PLUS Loans are assessed the same origination fee percentage
Origination Fee Calculator
Students can download an origination fee spreadsheet. This resource will help them calculate the amount that will disburse as payment toward their charges based on the amount they borrow for Federal Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS Loans. The calculator can also help students and parents figure out how much to borrow if they want a specific amount to disburse as payment.