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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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babybunny
11:30
you have to be the art hoe gf u want to see in the world
11:30
Where's all these spam emails all these schools kept promising me? I go to my spam inbox every day and find nothing every time
HellWoods2024
11:31
I prefer nepo baby entitled princess gf tbh
I honestly would prefer to be assigned anime girl at birth
Pookie52
11:31
Duke would rather throw away the second half of their apps than hire another admissions officer lol
FragrantUnderwood
11:32
any duke As?
im picking law schools on who has the most rizz and who rips the hardest blinkers
FragrantUnderwood
11:32
cheers my friends
babybunny
11:33
if i was a nepo baby i would be in film school rn. or writing autofiction
HellWoods2024
11:34
Nah the real hot ones do law or med tbh tryna show daddy they aren’t just worthless trust fund brats (they are)
I looked into joining a nonprofit for a job and every CEO was a brain rotted nepo baby
FragrantUnderwood
11:34
yeah wtf are you doing going to law school if you went to boarding school fr
all the hotties are in tech, I love a good computer nerd. yall looking in the wrong place
can confirm, married to one
Tech girl gf might peg me
FragrantUnderwood
11:35
No don't crowd out social mobility you're so sexy ahahah
HellWoods2024
11:35
Hell nah, tech bros and hoes are the worst at least in CA
11:36
@BashandTheomom: I was a computer science major and the majority of people smelled like mad BO including the women so idk about all that
HellWoods2024
11:36
The real goats are the psych girlies w the I can fix him complex (they can’t)
Yes give me a femcel queen
how tf did you get a 4.0 in comp sci
11:36
gm gang
11:37
have i missed anything
Everyone in psych is severely mentally ill
11:37
duke e wave?
eggbagel
11:37
yeah fr i got my 4.0 in a major that does not require any work (polisci)
HellWoods2024
11:37
Mental illness is hot tho
@KnowledgeableRitzyWasp: im in psych and can confirm
11:37
i got my degree in psych, can confirm
to each their own I guess lol
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