Do private student loans have fees?

Although there may be fees associated with private student loans, none of the lenders mentioned above levies origination, application, or prepayment fees. We adopt this position because we think that borrowers shouldn't be penalized for taking out loans or for repaying them early. In light of this, let's examine the various forms of fees frequently mentioned in relation to student loans.

  • Origination fee: The origination fee is a cost associated with borrowing money. Typically, it is determined as a percentage of the overall loan amount. A $10,000 loan with a 5% origination cost, for instance, would incur a $500 fee. Although there is an origination fee for private student loans, none of the lenders on our list above do.
  • Application fee: You will be required to pay this fee when you complete and submit a loan application. None of the lenders mentioned above impose this fee, just like they do with the origination fee.
  • Late payment fee: If you don't make a payment on time, you will be assessed this cost. This could be specified by the lender as a fixed sum (such as $25) or as a percentage of the missed payment (such as 5%). We advise creating a repayment plan that might assist you to make sure you make your payments on time since some of the lenders on our list do charge this cost.
  • Prepayment fee:  You will be assessed this fee if you repay your loan early. None of the aforementioned lenders impose this fee.

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