The article may contain affiliate links from partners. The words, opinions, and reviews are our own. Learn how we make money to support our financial wellness mission.
A Loan Fee is defined as a fee charged by a lender to make a loan (in addition to the interest charged to the borrower).
Loan Fee Example
With student loans, a loan fee may be charged for each federal student loan you receive. It’s a percentage of the total loan amount you are borrowing (gross amount). The loan fee is deducted proportionately from each disbursement of your loan. This reduces the actual loan amount you receive (net amount). The specific loan fee that you are charged will be included in a disclosure statement you will receive after the first disbursement of your federal student loan. You will be required to repay the gross amount.
