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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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sick of these dumbass promotional WashU emails
J-Reuben-Clark-Law
14:15
I am sick of law schools sending out emails without the option to unsubscribe. It's straight up illegal and shows you the quality of education you will get there.
J-Reuben-Clark-Law
14:16
CAN-SPAM Act violation
literally
14:47
dude washu has sent me an email at least once per feek for 3 months
14:47
it has significantly impacted my opinion on their law school
14:48
week* frick
BluePacedCephalopod
14:49
yeah like i've gotten radio silence from them since october
BluePacedCephalopod
14:49
like if you don't want me that's fine but why not reject or WL people? too busy having Zoom seminars
BluePacedCephalopod
14:50
like it's actually so rude that they don't have the decency to R/WL before like April
15:03
Lmaoo the Zoom seminars
GW is requesting my fall transcripts (I had intended to apply during the fall semester when I requested them, but had three hurricanes-one with water rescues in my neighborhood-an emergency 2 1/2 week trip to Colorado to say goodbye to my mother-in-law, then I received my service dog, which required another eight days away from school for training), so I ended up applying this month. If I request new transcripts through LSAC, does each school I applied to receive them? I'm hoping to not have to write an addendum of why all of my narrative evaluations mention my busy schedule or that I had to miss classes and whatnot. (My school doesn't do letter grades.)
AnotherUsername1
16:31
Yes, they receive them automatically from LSAC
@AnotherUsername1: Thank you! :)
1a2b3c4d26z
17:00
hi
omelette
17:22
yooo 1a
omelette
17:22
its eggan
omelette
17:22
eff i missed him
Do y'all think Berkeley's gonna reject me or waitlist me. An A seems unlikely atp.
omelette
18:24
i feel the same way
'tis very sad
It sucks cause I feel like I fucked up my video statement but the rest of my app was strong and now the video statement isn't even a requirement
I think as long as you haven't been R or WL, you're still in the running! I don't think they'd leave anyone hanging if they already knew! <3
BatmanBeyond
19:12
Tried negotiating scholarships with the school but they basically called my bluff saying I have to share other letters by the deposit deadline to get any $. It feels good to bet on myself though
1a2b3c4d26z
19:37
EGGGGG
1a2b3c4d26z
19:38
MY MAN
1a2b3c4d26z
19:38
How's it goin
[M] hw03
20:46
how's everyone doing
did anyone have a penn date change? mine went into review early feb, then the date on the portal changed to a couple days ago.. but no email update wondering if anyone else is in the same boat
omelette
22:24
@1a2b3c4d26z: im ok just waiting on a few more schools
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