Details of federal and private student loans depend on whether the borrower is an undergraduate student or a graduate student. These tables highlight the differences between federal and private student loans and parent loans for each type of student.
Compare Undergraduate Student Loan Options 2024 - 2025
| Characteristic | Direct Subsidized Loans | Direct Unsubsidized Loans | Parent PLUS Loans | Private Student Loans |
|---|---|---|---|---|
| Annual Limits | $3,500 to $5,500 | $5,500 to $7,500 (dependent student) $9,500 to $12,500 (independent student) |
Cost of Attendance minus Student Aid | Cost of Attendance minus Student Aid |
| Cumulative Limits | $23,000 | $31,000 (dependent student) $57,500 (independent student) |
None | Varies by Lender, Degree, and Academic Major |
| Cosigner Required? | No | No | Endorser if Adverse Credit History; Student cannot be endorser | Cosigner required if student borrower does not satisfy credit criteria |
| Cosigner Release Option | N/A | N/A | No | Varies by Lender and Borrower Credit. Typically requires 12-48 months of consecutive on-time payments. |
| Credit Criteria | None | None | Borrower may not have an Adverse Credit History | Credit Scores, Debt-to-Income Ratios, Minimum Income, No Adverse Credit History |
| Interest Rates Based on Credit Criteria | No | No | No | Yes |
| Interest Rate Type | Fixed | Fixed | Fixed | Fixed and Variable Options |
| Interest Rate | Fixed at 6.53% for the 2024 - 2025 academic year | Fixed at 6.53% for the 2024 - 2025 academic year |
Fixed at 9.08% for the 2024 - 2025 academic year |
Depends on the borrower and cosigner credit |
| Subsidized Interest | Yes | No | No | No |
| Interest Capitalization | N/A | Once at Repayment | Once at Repayment | Monthly, Quarterly, Annually, or Once at Repayment |
| Rate Reduction for Automatic Debit | 0.25% | 0.25% | 0.25% | Varies by Lender |
|
Loan Fees |
1.057% * | 1.057% * | 4.228% * | Varies by Lender and Borrower Credit Typically, 0% to 5% |
| Requires School Certification | Yes | Yes | Yes | Yes |
| Requires FAFSA | Yes | Yes | Yes | No |
| Requires Half-Time Enrollment | Yes | Yes | Yes | Varies by Lender |
| Available for Unpaid Prior School Year Charges | No | No | No | Varies by Lender |
| Available for Continuing Education | No | No | No | Varies by Lender |
| Bar Study, Residency and Relocation Loans | No | No | No | Yes |
| Borrower | Undergraduate Students | Undergraduate Students | Parents of Dependent Undergraduate Students | Students and Parents |
| Lender | U.S. Department of Education | U.S. Department of Education | U.S. Department of Education | Banks, Credit Unions, Financial Institutions, State Agencies, Colleges and Universities |
| Secured? | No | No | No | No |
| Student Loan Interest Deduction | Yes | Yes | Yes | Yes |
| Interest Rate Reduction for In-School Interest Payments | No | No | No | Varies by Lender |
| In-School and Grace Period Deferment Options | Full Deferment | Immediate Repayment, Full Deferment | Immediate Repayment, Full Deferment | Immediate Repayment, Interest-Only Payments, Fixed In-School Payments, Full Deferment |
| Grace Period Length | 6 months | 6 months | 6 months | Generally 6 months for most loans, but terms may vary by lender |
| Forbearance Options | Up to 3 years | Up to 3 years | Up to 3 years | 1 year |
| Repayment Term | Varies by Repayment Plan and Loan Balance, 10 to 30 years | Varies by Repayment Plan and Loan Balance, 10 to 30 years | Varies by Repayment Plan and Loan Balance, 10 to 30 years | Varies by Lender, 5 to 25 years |
| Repayment Plans | Standard, Extended, Graduated, ICR, IBR, PAYE, REPAYE | Standard, Extended, Graduated, ICR, IBR, PAYE, REPAYE |
Standard, Extended, Graduated |
Varies by Lender |
| Public Service Loan Forgiveness | Yes | Yes | No | No |
| Death Discharge | Yes | Yes | Yes, if borrower or student dies | Varies by Lender |
| Total and Permanent Disability Discharge | Yes | Yes | Yes | Varies by Lender |
| Prepayment Penalties | None | None | None | None |
| Can be Consolidated? | Yes, Does Not Relock Rate | Yes, Does Not Relock Rate | Yes, Does Not Relock Rate | Varies by Lender, Rate Based on Current Credit |
| Dischargeable in Bankruptcy | Generally no, unless borrower demonstrates undue hardship petition in an adversarial proceeding | |||
| Consequences of Default | Administrative Wage Garnishment, Intercept Income Tax Refunds and Lottery Winnings, Collection Charges, Ineligible for Federal Student Aid, Blocked Renewal of Professional License, No FHA/VA Mortgages, May be Sued, Negative Credit Reports | Wage Garnishment with Court Order, Collection Charges, May be Sued, Negative Credit Reports | ||
| Subject to Statutes of Limitations | No | No | No | Yes |
| Subject to Defense of Infancy | No | No | No | Yes |
| Truth-in-Lending Act (TILA) Disclosures Required | No | No | No | Yes |
| Oversight | U.S. Department of Education | U.S. Department of Education | U.S. Department of Education | CFPB |
* For loans borrowed Oct. 1, 2024 through Sept. 30, 2025.
Compare Graduate Student Loan Options
| Characteristic | Direct Unsubsidized Loans | Grad PLUS Loans | Private Student Loans |
|---|---|---|---|
| Annual Limits | $20,500 | Cost of Attendance minus Student Aid | Cost of Attendance minus Student Aid |
| Cumulative Limits | $138,500 (grad + undergrad combined), Increased to $224,000 for medical school students | None | Varies by Lender, Degree, and Academic Major |
| Cosigner Required? | No | Endorser if Adverse Credit History; Student cannot be endorser | Cosigner required for 90% of new loans, if student borrower does not satisfy credit criteria |
| Cosigner Release Option | N/A | No | Varies by Lender and Borrower Credit. Typically requires 12-48 months of consecutive on-time payments. |
| Credit Criteria | None | Borrower may not have an Adverse Credit History | Credit Scores, Debt-to-Income Ratios, Minimum Income, No Adverse Credit History |
| Interest Rates Based on Credit Criteria | No | No | Yes |
| Interest Rate Type | Fixed | Fixed | Fixed and Variable Options |
| Interest Rate | Fixed at 8.08% for the 2024 - 2025 academic year |
Fixed at 9.08% for the 2024 - 2025 academic year |
Depends on the borrower and cosigner credit |
| Subsidized Interest | No | No | No |
| Interest Capitalization | Once at Repayment | Once at Repayment | Monthly, Quarterly, Annually, or Once at Repayment |
| Rate Reduction for Automatic Debit | 0.25% | 0.25% | Varies by Lender |
| Loan Fees | 1.057% * | 4.228% * | Varies by Lender and Borrower Credit Typically, 0% to 5% |
| Requires School Certification | Yes | Yes | Yes |
| Requires FAFSA | Yes | Yes | No |
| Requires Half-Time Enrollment | Yes | Yes | Varies by Lender |
| Available for Prior School Years | No | No | Varies by Lender |
| Available for Continuing Education | No | No | Varies by Lender |
| Bar Study, Residency and Relocation Loans | No | No | Yes |
| Borrower | Graduate Students | Graduate Students | Graduate Students |
| Lender | U.S. Department of Education | U.S. Department of Education | Banks, Credit Unions, Financial Institutions, State Agencies, Colleges and Universities |
| Secured? | No | No | No |
| Student Loan Interest Deduction | Yes | Yes | Yes |
| Interest Rate Reduction for In-School Interest Payments | No | No | Varies by Lender |
| In-School and Grace Period Deferment Options | Interest Only Payments, Immediate Repayment, Full Deferment | Immediate Repayment, Full Deferment | Immediate Repayment, Interest-Only Payments, Fixed In-School Payments, Full Deferment |
| Grace Period Length | 6 months | 6 months | Generally 6 months for most loans, but terms may vary by lender |
| Forbearance Options | Up to 3 years | Up to 3 years | 1 year |
| Repayment Term | Varies by Repayment Plan and Loan Balance, 10 to 30 years | Varies by Repayment Plan and Loan Balance, 10 to 30 years | Varies by Lender, 5 to 25 years |
| Repayment Plans | Standard, Extended, Graduated, ICR, IBR, PAYE, REPAYE |
Standard, Extended, Graduated, ICR, IBR, PAYE, REPAYE |
Varies by Lender |
| Public Service Loan Forgiveness | Yes | Yes | No |
| Death Discharge | Yes | Yes, if borrower or student dies | Varies by Lender |
| Total and Permanent Disability Discharge | Yes | Yes | Varies by Lender |
| Prepayment Penalties | None | None | None |
| Can be Consolidated? | Yes, Does Not Relock Rate | Yes, Does Not Relock Rate | Varies by Lender, Rate Based on Current Credit |
| Dischargeable in Bankruptcy | Generally no, unless borrower demonstrates undue hardship petition in an adversarial proceeding | ||
| Consequences of Default | Administrative Wage Garnishment, Intercept Income Tax Refunds and Lottery Winnings, Collection Charges, Ineligible for Federal Student Aid, Blocked Renewal of Professional License, No FHA/VA Mortgages, May be Sued, Negative Credit Reports | Wage Garnishment with Court Order, Collection Charges, May be Sued, Negative Credit Reports | |
| Subject to Statutes of Limitation | No | No | Yes |
| Subject to Defense of Infancy | No | No | Yes |
| Truth-in-Lending Act (TILA) Disclosures Required | No | No | Yes |
| Oversight | U.S. Department of Education | U.S. Department of Education | CFPB |
* For loans borrowed Oct. 1, 2024 through Sept. 30, 2025.
Learn More About Student Loans for College
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Introduction to Parent PLUS Loans