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gif is the process by which a borrower applies for a new loan, and a lender processes that application. Origination fee generally includes all the steps from taking a loan application through disbursal of funds (or declining the application). Loan servicing generally covers everything after disbursing the funds until the loan is fully paid off. Loan origination is a specialized version of new account opening for financial services organizations. Certain people and organizations specialize in loan origination, with mortgage brokers and other mortgage originator companies serving as a prominent example. A Loan Origination Fee Is Often required and this is one of the legal / approved fee required of borrowers mostly by UK lenders. No other fee is expected from the borrower a Borrower has paid for this fee because it covers the originating and conclusion of the loan application.

There are many different types of loans. For more information on loan types, see the loan and consumer lending articles. Steps involved in originating a loan vary by loan type, various kinds of loan risk, regulator, lender policy, and other factors.

Direct Loans are loans from the federal government for students and their parents to help pay for the cost of highgifer education. They are low-interest to help people afford to go to college or other accredited institution. The money is borrowed from the United States Department of Education, though the borrower may deal with a private business rather than the Department of Education.

With Direct Loans, even if the student changes schools, there is one contact for loan information. Each company that provides Direct Loan service has a convenient website to check on the status of the loan and repayment information. Direct Loans offer a variety of different repayment plans, so borrowers can find a plan that fits their needs. The repayment plan can be changed if circumstances change for the borrower.



On the standard repayment plan, the borrower will pay a set amount each month. Payments are at least $50 per month, and the borrower will have up to 10 years to pay off the loan. This is a good option for borrowers who can afford a higher monthly payment.

Extended Repayment

The borrower must have more than $30,000 debt from Direct Loans for the extended repayment plan. There also must not be an outstanding balance after October 7, 1998. This payment plan gives the borrower 25 years to repay the loan. Payments are either fixed or graduated.

Graduated Repayment

Payment start low and increase every 24 months. Repayment will take up to ten years. This is good for those who expect to start working with a low income, but gradually increase income over time.

Income Contingent Repayment

This plan bases the monthly payment off of your adjusted gross income, family size and the amount of the loan. If loans are not paid off in 25 years, the monies unpaid will be discharged.