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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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10:35
they should change it to making you write an essay on some foreign film
10:36
like la haine or the apu trilogy or some shit
10:36
that would be more interesting
NosyBeagle
10:38
@NemoPropheta: LSAT haters unite. This test sucks butt
10:43
I got 2 weeks left of this shit and I have 0 motivation
10:55
@RasheedWallaceFan: yeah for some reason SMU isnt listed on any of the rankings lists. Been that way all year
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You'll forever have those days where shit ain't getting done. Just a matter of how you handle them. (IE using Chatgpt to draft a motion for leave like meeeee)
NosyBeagle
13:52
look at my lawyer dawg... im going to jail
Nah, I don't use it to do my case law. Just the actual motion drafting.
For example, I was trying to get the right language in a Motion for Sanctions (tl;dr slip and fall case, defense counsel played nothing but games – IE never sending records despite it being mandatory to trcp, producing never before seen records DURING A DEPO) and just talked to ChatGPT about his behavior to provide background to help with the drafting for the procedural paragraph.
@NosyBeagle: just makes me think of vanillamace
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Can i get accommodations for mid test 2 hour nap
I mean, i have sadhd
15:34
you could get accommodations for the schizoaffective disorder you clearly have
NosyBeagle
15:53
a two hour nap in between sections would be great for me
ronniedoeslaw
15:58
LSAT isn’t horrible you just have to lock in really hard for 2 hours and expect to be exhausted the rest of the day mentally
16:30
ugh i hit this lady w my car
16:31
well i hit her car and the cops said there's no damage but she says there is should i call my insurance what u think lawyers
real quick question. How much do early applications matter? I have super strong softs and an ok LSAT score of 160. GPA wasn't great at 3.33. I applied in late march and I have been rejected everywhere so far
16:58
late march is way too late
16:58
early doesn’t matter but before thanksgiving matters
ronniedoeslaw
16:59
Have you used the LSAC search for schools link? It helps a lot letting you know the probability of acceptance.
I mean early early might be overblown but dont apply if you are applying in march
does anyone know how many questions they typically ask for the UT recorded interview
20:21
has anyone been accepted off of the waitlist for New England yet?
ronniedoeslaw
20:36
No yet for me, I was waitlisted on Monday
ronniedoeslaw
20:36
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