Federal student loans have helped student pay for higher education since the mid 1950s with the introduction of the GI bill. The programs have come a long way since then and today assist over 8 million families a year. The chart below outlines the various federal loan programs available to students and parents.
Federal Family Education Loan Program: Loan Comparison Chart |
Loan Program |
Subsidized Stafford Loan |
Unsubsidized Stafford Loan |
Parent PLUS Loan |
Graduate PLUS Loan |
Perkins Loan |
Application Process |
Submit Free Application for Federal Student Aid (FAFSA)
First-time borrowers, complete the Federal Stafford Loan MPN |
First-time borrowers, complete the Federal Stafford Loan MPN |
Submit Free Application for Federal Student Aid (FAFSA)
First-time borrowers, complete the Federal Stafford Loan MPN |
Borrower |
Dependent or independent student |
Parent of dependent undergraduate student |
Graduate student |
Dependent or independent student |
Interest Rates |
6.8% fixed rate on loans issued beginning 7/1/2006.
For loans issued 7/1/1998–7/1/2006, the interest rate is variable and resets every July 1. The in-school interest rate based on the 91 day T-bill + 1.7% and the repayment interest rate is based on the 91 day T-bill + 2.3%. The rate is capped to never exceed 8.25% |
8.5% fixed rate on loans issued beginning 7/1/2006.
For loans issued 7/1/1998–7/1/2006, the interest rate is variable and resets every July 1 based on the 91 day T-bill + 3.1%.
The rate is capped to never exceed 9%. |
5% fixed rate |
Eligibility |
Based on financial need |
Not based on financial need |
Based on financial need |
Annual Loan Maximum |
Year : $2,625
Year 2: $3,500
Years 3–5: $5,500
Graduate and professional: $8,500 |
Dependent student:
Same as Subsidized Stafford (less
any amount of Subsidized Federal
Loans received)
Independent student:
Same as Subsidized Stafford plus
an additional amount:
Year 1: $6,625
Year 2: $7,500
Years 3–5: $10,500
Graduate and professional: $18,500 |
Cost of attendance less other aid received |
Based on financial need |
Lifetime Loan Maximum |
$23,000 undergraduate dependent maximum
$46,000 undergraduate independent maximum
$138,500 graduate maximum.
Combined subsidized and unsubsidized Stafford Federal Loan programs |
Cost of attendance less other aid received |
$3,000 for
undergraduate students
$5,000
for graduate students |
In-School Deferment |
Payments are automatically deferred during the in-school period. The student is not responsible for paying the interest that accrues during the in-school and grace periods. |
Payments can be deferred during the in-school period. The student is responsible for paying the interest that accrues during the in-school and grace periods. Unpaid interest that accrues during these periods will be capitalized and added to the principal balance of the loan at the start of repayment. |
No deferment options, however, borrowers may apply annually for forbearance that will allow them to postpone principal and interest payments while the student is in school for up to five years. Unpaid interest that accrues during these periods will be capitalized and added to the principal balance of the loan at the start of repayment. |
Payments can be deferred during the in-school period. The student is responsible for paying the interest that accrues during the in-school and grace periods. Unpaid interest that accrues during these periods will be capitalized and added to the principal balance of the loan at the start of repayment. |
Payments are automatically deferred during the in-school period. The student is not responsible for paying the interest that accrues during the in-school periods. |
Grace Period |
6 months |
6 months |
No grace period |
9 months |
