Whitehouse & Company CPA's
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Comparison of Federal Higher Education Loans

  Unsubsidized Stafford Loan Subsidized Stafford Loan Perkins Loan PLUS Loan
Description A low-interest, federally deferred student loan A low-interest, federally deferred student loan A low-interest, federally deferred 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, minus 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 or private financial institution, depending on which federal education loan program the college participates in Federal government or private financial institution, depending on which federal education loan program the college participates in College Federal government or private financial institution, depending on which federal education loan program the college participates in
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, 20061 5% 8.5% fixed for loans disbursed after June 30, 20061
Interest subsidized No Yes2 Yes2 No
Grace period 6 months 6 months generally 9 months None
Loan limits 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: $3,500
2nd year: $4,500
3rd - 5th year: $5,500/year
Maximum: $23,000
Independent undergraduates and dependent undergraduates whose parents don't qualify for PLUS loans:
1st year: $6,625
($3,500 subsidized)
2nd year: $7,500
($4,500 subsidized)
3rd - 5th year: $10,500/year
($5,500/year subsidized)
Maximum: $46,000
($23,000 subsidized)
Graduate students:
Any year: $20,500/year
($8,500 subsidized)
Maximum: $138,500, including undergraduate loans
($65,500 subsidized)

Notes
1For Stafford and PLUS loans disbursed on or after July 1, 1998 through June 30, 2006, for the period July 1, 2007 through June 30, 2008, the interest rate on Stafford loans in repayment is 7.22% (up from 7.14%), the interest rate on in-school, grace, or deferment status Stafford loans is 6.62% (up from 6.54%), and the interest rate on PLUS loans is 8.02% (up from 7.94%).
2The 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.



Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011