Comparison of Federal Loans

For Stafford loans first disbursed beginning July 1, 2006, the interest rate is fixed at 6.8%.

5% fixed

The interest rate for Parent PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5%.

For loans first disbursed July 1, 2007–June 30, 2008: Up to 2.5% in fees that includes a 1.5% federal origination fee and a 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees.

None

Up to 4%: a 3% federal origination fee and a 1% federal default fee.

Note: There are lenders and guarantors that work with Sallie Mae that will pay all or a portion of the default fee on behalf of Parent PLUS borrowers whose loans are guaranteed July 1, 2007—June 30, 2008.

Dependent
$3,500* first year combined

$4,500* second year combined

$5,500 third and fourth year combined

Independent
$7,500* first year combined

$8,500* second year combined

$10,500 third and fourth year combined

*For loans first disbursed on or after July 1, 2007.

Dependent
$3,500* first year combined

$4,500* second year combined

$5,500 third and fourth year combined

Independent

$7,500* first year (up to $3,500 in subsidized Stafford)

$8,500* second year (up to $4,500 in subsidized Stafford)

$10,500 third and fourth year (up to $5,500 in subsidized Stafford)

*For loans first disbursed on or after July 1, 2007.

$4,000

Borrow up to the full cost of your dependent, undergraduate child's education less other aid received.

Dependent
$23,000

Independent
$46,000

Dependent
$23,000

Independent
$46,000

Six months after student graduates, withdraws, or attends school less than half time.

Nine months after student graduates, withdraws, or attends school less than half time.

Starts within 60 days after final disbursement of the loan.

You may postpone repayment for up to 60 months, including while your child is in school.