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
7/1/08 - 6/30/09 |
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 PLUS Loan MPN |
Submit Free Application for Federal Student Aid (FAFSA)
First-time borrowers, complete the Federal PLUS Loan MPN |
Submit Free Application for Federal Student Aid (FAFSA) |
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.
6.0% fixed rate on Subsidized loans issued to undergraduates 7/1/08-6/30/09. |
8.5% fixed rate on loans issued beginning 7/1/2006. |
5% fixed rate |
Eligibility |
Based on financial need |
Not based on financial need |
Based on financial need |
Annual Loan Maximum |
Year : $3,500
Year 2: $4,500
Years 3–5: $5,500
Graduate and professional: $8,500 |
Dependent student:
Additional $2,000 per year beyond the subsidized amount
Independent student:
Additional amount each year beyond the subsidized amount; combined sub/unsub maximums:
Year 1: $9,500
Year 2: $10,500
Years 3–5: $12,500
Graduate and professional: $20,500 |
Cost of attendance less other aid received |
Based on financial need |
Lifetime Loan Maximum |
$31,000 undergraduate dependent maximum
$57,500 undergraduate independent maximum
$138,500 graduate maximum.
Combined Federal Subsidized and Unsubsidized Stafford 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. Interest is not charged 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 (added to the principal balance of the loan) at the start of repayment. |
Payments can be deferred during the beneficiary student’s in-school and grace periods. Parent borrower is responsible for paying interest that accrues during these periods. Unpaid interest that accrues during these periods will be capitalized (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 (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 |
6 months |
9 months |
