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What is an origination fee on a loan?

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Some lenders include origination fees in their student loans which could end up surprising borrowers when they receive less money than the total amount that was borrowed, or mislead them when making comparisons between different student loan options.

In order to evaluate them, we must first understand what are the origination fees in a student loan.

What are the origination fees in a student loan

Student loans have costs assessed by lenders when they issue or process a loan, this are called origination fees.

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