Comparison of federal higher education loans
| Unsubsidized Stafford Loan | Subsidized Stafford Loan | Perkins Loan | PLUS Loan | |
| Description | A low-interest federal student loan | A low-interest federal student loan | A low-interest federal student loan available to students with the greatest financial need | A federal education loan made to borrowers with good credit histories; borrowers may borrow the full cost of higher education, less any financial aid received |
| Available to | Undergraduate and graduate students enrolled at least half-time | Undergraduate and graduate students enrolled at least half-time | Undergraduate and graduate students (can be less than half-time) | Parents of undergraduate students enrolled at least half-time, and independent graduate and professional students |
| Lender | Federal government only (prior to July 1, 2010, loan could be obtained from federal government or private lender) | Federal government only (prior to July 1, 2010, loan could be obtained from federal government or private lender) | College | Federal government only (prior to July 1, 2010, loan could be obtained from federal government or private lender) |
| Borrower | Student | Student | Student | Parent or graduate/professional student |
| Based on financial need | No | Yes | Yes | No |
| Interest rate | 6.8% fixed for loans disbursed after June 30, 20061 | 6.8% fixed for loans disbursed after June 30, 2006--this interest rate will gradually be reduced to 3.4% by 20122 | 5% | 8.5% fixed for loans disbursed after June 30, 20061 |
| Interest subsidized | No | Yes3 | Yes3 | No |
| Grace period | 6 months | 6 months | generally 9 months | 6 months |
| Loan limits 2010/2011 | Dependent undergraduates: | Undergraduate students: $4,000/year $20,000 limit Graduate students: $6,000/year $40,000 limit (including undergraduate loans) | Student's total cost of education, less any other financial aid received by either the student or parent | |
| 1st year: | $5,500 ($3,500 subsidized) | |||
| 2nd year: | $6,500 ($4,500 subsidized) | |||
| 3rd - 5th year: | $7,500/year ($5,500/year subsidized) | |||
| Maximum: | $31,000 | |||
| Independent undergraduates and dependent undergraduates whose parents don't qualify for PLUS loans: | ||||
| 1st year: |
$9,500 ($3,500 subsidized) | |||
| 2nd year: |
$10,500 ($4,500 subsidized) | |||
| 3rd - 5th year: |
$12,500/year ($5,500/year subsidized) | |||
| Maximum: | $57,500 | |||
| Graduate students: | ||||
| Any year: |
$20,500/year ($8,500 subsidized) | |||
| Maximum: |
$138,500, including undergraduate loans ($65,500 subsidized) |
Notes
1The interest rate for Stafford and PLUS Loans disbursed on or after July 1, 1998 through June 30, 2006 is variable. For the period July 1, 2010 through June 30, 2011, the interest rate on Stafford Loans in repayment is 2.47% (down from 2.48%), the interest rate on in-school, grace, or deferment status Stafford Loans is 1.87% (down from 1.88%), and the interest rate on PLUS Loans is 3.27% (down from 3.28%).
2For subsidized Stafford Loans, the interest rate will be fixed at 6.0% for loans first disbursed on or after July 1, 2008 and before July 1, 2009; 5.6% for loans first disbursed on or after July 1, 2009 and before July 1, 2010; 4.5% for loans first disbursed on or after July 1, 2010 and before July 1, 2011; and 3.4% for loans first disbursed on or after July 1, 2011 and before July 1, 2012.
3The federal government pays the interest on the loan when the student is in school at least half-time, in a grace period, or in a deferment period.