Student Loan Fees

Here's an idea of the fees you'll pay on your student loans

It's generally understood that federal student loans carry lower interest rates than private or "alternative" loans—which is the main reason that experts say you should always exhaust your federal loan options before tapping into private loans. Since 1981, federal student loans have typically included various fees covering origination costs and insurance against default, while many private loans do not. Student loan fees differ depending on the type of loan you have applied for, so it's important to be aware of the fees you'll need to pay and understand what they are for.

Fees on federal student loans

Here's a look at the various types of federal student loan fees.

  • On Federal Stafford Loans, there is a 0.50% origination fee, and up to a 1% default fee, depending on the school's choice of loan guarantors.
  • Federal PLUS Loans for undergraduates carry a 3% origination fee, in addition to a 1% default fee (again, depending on the choice of guarantors).
  • On direct loans, the origination fee for PLUS Loans is 4%.

In years past, many guarantors and/or lenders subsidized these fees, but more recently, that has not been the case.

On the other hand, to take Citizen Bank's Citizens Bank Student Loan™ as an example, there are no upfront fees that come with the student loan, though such things as late fees naturally are applied if payments are made late.

Learn more about our affordable Citizens Bank Citizens Bank Student Loans

Find additional student loan repayment information, or to understand your student loan statements, we have the resources that you need. Also, you can find helpful details about an affordable Citizens Bank Citizens Bank Student Loan™. If you still have questions, call a student loan specialist at 1-800-708-6684, and we'll help walk you through the student loan process.

Additional student loan and college planning resources

What Can Private Student Loan Money Be Spent On?
Federal Regulation of Student Loans
What is the Difference Between Stafford and Perkins Student Loans?
When to File as an Independent Student
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