Financial Aid for College
 

Comparison of Federal Higher Education Loans

Direct Unsubsidized LoanDirect Subsidized LoanDirect PLUS Loan
DescriptionA federal student loan available to students regardless of financial needA federal student loan available to students with financial needA federal loan available to parents and students with good credit histories regardless of financial need
Available toUndergraduate and graduate students enrolled at least half-timeUndergraduate students only enrolled at least half-timeParents of undergraduate students enrolled at least half-time, and graduate and professional students
LenderFederal government only Federal government onlyCollege
BorrowerStudentStudentParent or graduate/ professional student
Based on financial needNoYesNo
2024-2025 interest rate

6.53% for undergraduates

8.08% for graduate students

6.53% 9.08%
Interest subsidizedNoYes1No
Grace period6 months6 months6 months
2024-2025 loan limits

Dependent undergraduates: 1st year - $5,500 ($3,500 subsidized), 2nd year - $6,500 ($4,500 subsidized), 3rd to 5th year - $7,500/year ($5,500 subsidized), $31,000 maximum

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 to 5th year - $12,500/year ($5,500/year subsidized), $57,500 maximum

Graduate students: $20,500 per year, $138,500 maximum including undergraduate loans

Student's total cost of education, minus any other financial aid received

1 The federal government pays the interest on the loan while the student is in school at least half-time, in a grace period, or in a deferment period.


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