For example, some lenders offer repayment schedules that start with very low payments that increase over time. The repayment method selected impacts the total amount you repay, and that amount is outlined in your Disclosure Statement. Your loan check comes in and you see less. Loan process administrative fees are deducted from your loan proceeds. These fees are generally what it costs the loan provider to process your application and loan money.
Fees vary by loan program and also include insurance fees.
You should inquire about the fees associated with each loan, as some loan providers will discount their fees to get your business. Interest Interest is what lenders charge for the use of their money and to cover their costs for servicing your loan until it's paid in full. The great thing about a federally guaranteed loan is that lenders can offer you a lower rate than you could typically get on your own, because the federal government is involved, which helps keep the interest rates lower. You can reduce the amount of interest you pay by paying the loans off as quickly as you can. You should give some thought to choosing a lender.