The insurance fee is passed on by the lender to the federal government as insurance against default. The insurance fees are charged as the loan is disbursed, and typically run to 1% of the amount disbursed. See also "Guarantee Fee."
A fee charged to guarantee student loans against loss through default. The amount charged is usually deducted from the disbursement of the principal.
A fee deducted from the principal which is sent to a guarantee agency or the government to offset processing costs.
It's just like car insurance, only it's not as expensive. The guarantor* can charge you up to 1 percent of your loan as an insurance fee.
A fee charged for guaranteed student loans that is actually default insurance and is deducted from the loan amount.
A fee charged by guaranty agencies which is deducted from student loan proceeds and which is used to insure against defaulted loans. Texas Guaranteed Student Loan Corporation is currently waiving this fee. Back to glossary main page
A fee of up to 1% deducted from the student loan by a guarantee agency.
A fee charged for the use of borrowed money, computed as a percentage of the principal. The amount charged may be based on the borrower's year in school and the grace period.
Fee charged to guarantee student loans against loss through death or permanent disability.
