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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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robotarmsapartments
21:18
I felt like it was fun and fine, I'm not necessarily proud of every answer in terms of depth and thoughtfulness but I figured they were being real when they said to relax and be yourself. Felt okay on that front
8888887777776t6t
21:18
@KnowledgeableRitzyWasp: Well, I just checked, and I submitted on 11/11 and went complete on 11/27. I got the II on 1/22. Looks like almost everyone who submitted by those dates has heard. As I said, preparing for a humiliating March.
8888887777776t6t
21:18
Right. Well, good luck, robot.
robotarmsapartments
21:18
You too 8
robotarmsapartments
21:19
Enjoy the weekend
8888887777776t6t
21:19
Haha. I'll try. You too.
That is miserable, I am sorry for that outcome
8888887777776t6t
21:23
At this point, what I want is an OSU A with a full ride. Judging from lsd data, that seems realistic. If that happens, it'll come down, most likely, to OSU and a small handful of (slightly) better schools that haven't given me a full ride.
honestly, i think they overlooked a lot of 1/22 II's @8888887777776t6t
only 1 1/22 has heard back, and i haven't, neither has my roommate who has the exact sam stats + when to cornell UG
8888887777776t6t
21:23
Oh, I see you're a 1/22. Phew! Gives me hope. :)
8888887777776t6t
21:23
I hope you're right.
their app closes today, so they need to fill out a class w/ their current pool.
8888887777776t6t
21:27
I don't really understand how they could overlook IIs though. Like, do you mean they made a mistake in overlooking them or that they deliberately set them temporarily aside for some reason?
the latter
additionally, idt they go by sent date, most of the A's seem to be mixed dates
Done with my hail mary cornell app
No more living in regret abt skipping them the one year they decide to like splitters
8888887777776t6t
21:31
Bro, it's not a hail mary. You have a 180.
8888887777776t6t
21:33
@sufferchildrensmiths: Also, you're making me more hopeful (though I still want to keep my expectations low at this point). For we do have a fair amount in common besides the 1/22 II date. We both submitted on the same date, we have the same GPA, and we both have a grad degree.
8888887777776t6t
21:37
I'm at 15/15, so I'm going to stop talking now. :)
Good luck, I am glad hope has returned
0:16
sup everybody
hello lsd.law user hotwhale
good to meet you
DLH
1:12
Silly question: Is the standard procedure for withdrawing an acceptance/waitlist to simply email the admissions department/primary contact?
@FranticSpiffySwallow: You'll get into a top school
some reverse-splitter will counteract your GPA
if your school does not do out of 4.3, then you have nothing to worry about. :)
Pongleton
11:56
For a scholarship that has an additional essay do yall think the scholarship committee reads your full app to that school plus the extra essay or just the extra essay? Trying to figure out if things would be too repetitive
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