The lender deducts it in equal proportions from each disbursement. If any loan disbursement check is returned to the lender uncashed or is repaid in full within 120 days from the date of disbursement, you're entitled to a refund of any origination fee paid. This premium insures the lender against loss in the event that you default on a loan. It also serves as an insurance for you. The government fully pays off the loan if you die, become disabled, etc.
Some guaranty agencies charge a lower fee or no fee.
The premium is deducted in equal proportions from each disbursement. As with the origination fee, you're entitled to a refund of any insurance premium paid if any loan disbursement check is returned to the lender uncashed or is repaid in full within 120 days from the date of disbursement. To find out, use Educaid Online . Click on the name of the appropriate loan. A chart with information about that loan will appear.