And oftentimes, a student's and family's unique circumstances will determine what loan program makes the most sense. You should refer to the StudentLoan. Net page on Alternative Loans for more information. Q. The amount of my student disbursements was less than I was awarded by the school. Guarantee fees are used by the lender in creating a reserve to protect the loan program in instances when borrowers default on their loans.
Origination fees are a processing fee retained by lenders.
The Department of Education determines the maximum percentage for guarantee and origination fees for Federal Stafford, PLUS and Direct loans. For alternative loans programs, there is generally no maximum fee rate. The federal government proscribes an official federal EFC calculation. EFC right on the Internet. Click Here .