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What is an Origination Fee ? Plus Other Terms You Should Know When Borrowing for Law School

Uhh, can I phone a friend?
Apr 2, 2023

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?
Windsor MIT '22, Harvard College Advisor

I am the half of LSD that didn't take the LSAT, or go to law school (Sorry about that). But I did go to MIT business school while surrounded by law students and lawyers, so I am somewhat qualified to talk about the intricacies of law school apps and finances.

Windsor (the dog) didn't write this but he WAS a Resident Tutor and career advisor at Harvard College with me, so deserves some credit.

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Dkk
23:13
Oh yeah? Cus you have such a big smart brain?
Dkk
23:13
Hehehe yeah.
[] baddestbunny
23:14
No I mean because we’re applying to different scholarships lol I wasn’t being an asshole
Dkk
23:14
Lmfao, no no, I am not being argumentative. I mean that as a complement.
Dkk
23:15
Ahh yeah see uhh me speaking in post irony and getting in trouble again.
Dkk
23:15
Sorry about that.
I applied to RTK
I'm not sure how competitive their named scholarship programs are tho
since they have so goddamn many of them
Dkk
23:23
Ahh yeah good luck!
Dkk
23:24
Does anyone know anything about this band? They are touring and my friend wants to see them: https://www.fortyfeettall.com/
[] baddestbunny
23:25
I think RTK is like wildly competitive but no idea how they decide who is best suited for each program
[] baddestbunny
23:25
I have a personal opinion on which one I’m most closely aligned with but that’s just me
Yeah, that makes sense. It does look like an incredibly opportunity all-around.
I guess at least most schools have LRAP regardless of scholarships
[] baddestbunny
23:28
Did you say you wanted to do civil rights law? I feel like I remember that
Moreso civil liberties
Dkk
23:36
Why texas law with those stats? Could essentially go anywhere! @Texas
[] baddestbunny
23:48
Dk could I go anywhere
23:56
Hi ni to meet u all
Dkk
0:09
Yeah, essentially above 175 its how you write. Really above 170. @Bunny and i dont eant an economic argument of but what abot scholarships? I say take the debt. Debt max.
Dkk
0:10
@shah nice to mee you too!
@Dkk: I made the username before I got my LSAT score back lol and then Texas was my top choice. But, longterm I def want to come back to Texas.
I love the state for all its faults and I think I could do a lot of good here.
Dkk
0:13
That's a good thing to hear. One of the attorneys I worked for was a Harvard Grad but he went back to GA. Gotta support your home
Dkk
0:14
I really wanna come back to Nevada after I graduate from wherever but we will see.
Yeah, I def agree with that. I think there's a lot of appeal to the northeast and all (or even west coast), but the reality is there's so many other places that need good lawyers in public interest roles.
[] baddestbunny
0:23
I do think supporting your home is really important
[] baddestbunny
0:23
Giving back to any community you live in really. I like when a school has specific outreach programs to the community it’s situated in
Dkk
0:42
Indeed indeed!
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