Loan Origination Fees

This is a mandatory fee charged by the U.S. Department of Education Federal Direct Loan Program for borrowing a Federal Stafford or Plus Loan. The loan origination fee is a percentage of the amount of each loan you receive, and is subtracted proportionately from each loan disbursement you receive. This means that the amount you accept on the myIIT portal will be less due to this automatic fee taken out by Direct Loans before the funds are posted to your student account. We strongly urge students to keep this in mind and add this fee to their calculation when accepting their requested loan amount(s) on the myIIT portal. If your loan accepted amount totals the exact amount you owe on your student account, you may not have borrowed enough and will have to account for this fee. 

Please note, the loan origination fee is subject to change per the U.S. Department of Education. 

We understand that this can be confusing to sort out, and that is why we have created these forms to help you determine how much you need to borrow:

Estimated Cost Worksheet

Refund Calculation Worksheet

See the charts below to determine the loan origination fee deducted from your loan(s). The new loan fee percentages will apply only to loans where the first disbursement of a loan is made on or after October 1 of each calendar year. For additional information and a list of historical fees, please visit the Federal Student Aid website.

Federal Sequestration Impacts Loan Origination Fee


**There will be no change in the Origination Fees for Direct Loans in 2022. The fees will remain the same for loans disbursed on or after October 1, 2021 and before October 1, 2022 and are as follows:

Federal Direct Unsubsidized Loan:   1.057%

Federal Direct Graduate PLUS Loan:   4.228%


Last Year's Fees: Effective October 1, 2020-October 1, 2021

Loan Type


Impacted Loans Loan Fee Dollar Amount
Direct Unsubsidized Loan First disbursed on or after October 1, 2020 and before October 1, 2021 1.057% $216.68 on a $20,500 loan
Direct Plus Loan First disbursed on or after October 1, 2020 and before October 1, 2021 4.228% $422.80 on a $10,000 loan

*Subject to change accordingly to the U.S. Department of Education Policy