Table of Contents

1. Origination Fee
2. Application Fee
3. Cosigner
4. Related Articles

Like every industry (probably worse than most industries) finance throws around terms and expects you to keep up or fall behind. This is LSD's attempt to cut through some of the noise and help you understand the terms they will throw at you when you try to borrow money a public (U.S. Government) or private (any lender or bank) loan.

What is an origination fee? 

1. If your loan has an origination fee then you will receive less money than you borrow. If you have a 4% origination fee, then you will get 96% of whatever you borrow. Borrow $10k, you will receive $9,600, and interest will accrue on the full $10k. -LSData 
2. “An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.” -studentaid.gov

The loans I am applying for have application fees, is that normal?

1. In short, no; You should reconsider the lender if they are charging application fees. None of our partner lenders charge application fees. 
2. If you are in a credit position where you can’t qualify for any federal loans or private loans (from more reputable lenders) that you need to attend school, then we recommend reaching out to your university for guidance.  

What is a cosigner?

1. Simply put, a cosigner is someone who agrees to pay your loans if you can't.
2. Since two people are putting their name and credit on the line (COSIGN-ing, get it?) you can usually get a better rate than you could alone.
3. Most private lenders require a cosigner, unless your credit is really strong (above a ~650-680).

Related Articles

1. How should I Choose a Student Loan?
2. Oddly specific questions you might be asking when borrowing for law school.
3. What Law School should I go to?