Introduction
Loan applied to my bill is less than expected
Question
Why didn't I receive the full amount of my Federal loan that I accepted?
Answer
There is a loan fee on all federal Direct loans (subsidized, unsubsidized, and PLUS). The loan fee is deducted from the gross amount you accepted for your loan; the net amount (gross amount less loan fee) is what applies to your bill.
The loan fee is a percentage of the amount of each loan you receive. The Department of Education (your lender) deducts the loan fee from each loan disbursement, which is reflected in your disclosure statement that your loan servicer sends to you after each loan disbursement.
Information about the loan fee is included in your loan entrance counseling and your Master Promissory Note (MPN).
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