Comparing Student Loans

What Loans are Best for You?

	Subsidized Stafford Loan	Unsubsidized Stafford Loan
Borrower	Student	Student
Interest	6.8% for loans after July 1, 2006	6.8% for loans after July 1, 2006
Is the rate variable?	No, but Congress can increase the interest rate for new loans	No, but Congress can increase the interest rate for new loans
Loan repayment term	10 years	10 years
Eligibility criteria	Need-based loan. Your school will determine your eligibility.	Non-need-based loan. Your school will determine your eligibility.
Credit check?	No	No
Interest rate cap	8.5%	8.5%
Discounts
Prepayment penalties	No	No
Eligible for consolidation?	Yes	Yes
Annual loan limits	Undergraduates: 1st Year - $2,625 2nd Year - $3,500 3rd Year- $5500 4th Year-$5500 Graduates: $8,500	Undergraduates: 1st Year - $2,625 2nd Year - $3,500 3rd Year- $5500 4th Year-$5500 Graduates: $18,500
Total loan limit	Undergraduates - $23,000 Graduates - $138,500	Undergraduates - $23,000 Graduates - $138,500
Origination fee	3% *	3% *
Guarantee fee	1% *	1% *

* 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.