Comparing Student Loans

What Loans are Best for You?

	PLUS Loan	Graduate PLUS Loan
Borrower	Parent/Guardian	Graduate Student or Graduate Student/Cosigner
Interest	8.5% for loans after July 1, 2006	Fixed at 8.5%
Is the rate variable?	No	No, but Congress can increase the interest rate for new loans
Loan repayment term	The repayment term usually is 10 years.	10 years
Eligibility criteria	Credit-based - you can borrow up to the cost of education if you pass the credit check.	Non-need based, based on borrower's credit.
Credit check?	Yes, a credit check is done to determine if you're eligible	Yes
Interest rate cap	8.5%	8.5%
Discounts
Prepayment penalties	No penalties for paying it off early	No
Eligible for consolidation?	Yes - you can consolidate as soon as the loan enters repayment	Yes
Annual loan limits	Borrow up to 100% of college costs, minus any financial aid awarded	Cost of attendance minus any other financial aid.
Total loan limit	Borrow up to 100% of college costs, minus any financial aid awarded
Origination fee	3%	3%
Guarantee fee	Up to 1%, though often waived	Up to 1%, though often waived

* For Stafford loans, these values are frequently waived. A zero fee is dependent upon school preference for guarantor. Check with your school for more information.

** The Education Resources Institute, Inc. ("TERI"), a non-profit education loan guaranty agency, is the guarantor of the ACT Education Loans Program.