The origination fee for Direct Subsidized Loans and Direct Unsubsidized Loans was reduced for 2010-11. A Department February announcement provides operational guidance for schools and third party software providers on implementing these latest reductions in the origination fee. In the past few months, many Direct Subsidized Loan and Direct Unsubsidized Loan awards rejected because the correct origination fee was not included with the award and/or was not used to calculate the award and its disbursements. For this reason, the Department reminds schools of this guidance that is critical to successfully implementing the origination fee reduction for Direct Subsidized Loan and Direct Unsubsidized Loan awards.