An origination fee on a loan is A percentage of the loan that is charged to cover the cost of giving the loan.
An origination fee on a loan is a percentage of the loan amount that is charged by the lender to cover the administrative costs of processing and providing the loan. This fee is not associated with the method of signing or co-signing, nor is it influenced by the location of the borrower's school. Instead, it is a standard charge applied to the loan amount, contributing to the overall cost of borrowing. Borrowers should consider origination fees when evaluating loan options, as they directly impact the total expense of obtaining the loan.