As of July 1, 2011: Direct Stafford loans will be charged an origination fee of 1.0% with a 0.5% up front rebate that assumes 12 on-time monthly payments. For Direct PLUS loans, there is a 4% origination fee with a 1.5% up-front rebate that assumes 12 on-time monthly payments. If students or parents do not make the first 12 monthly payments on time, the rebate will be lost and the rebate amount will be added to the principal balance, which will increase the amount that the student or parent must repay on the loan.
