Federal Student Loans for College: Comparison Table

March 1, 2017

Many families rely on federal student loans to help pay for college. This table describes features of the most common federal loans.

	Direct Unsubsidized Stafford Loan	Direct Subsidized Stafford Loan	Perkins Loan	Direct PLUS Loan (Parent/Grad)
Description	A federal student loan available to students regardless of financial need	A federal student loan available only to students with demonstrated financial need	A federal student loan available only to students with the greatest financial need	A federal loan available to parents and graduate students with good credit histories regardless of financial need
Eligibility	Undergraduate and graduate students enrolled at least half-time	Undergraduate students enrolled at least half-time	Undergraduate and graduate students (can be enrolled less than half-time)	Parents of undergraduate students enrolled at least half-time, and graduate and professional students
Funds Dispersed By	Federal Government	Federal Government	College	Federal Government
Borrower	Student	Student	Student	Parent or graduate/ professional student
Based on Financial Need?	No	Yes	Yes	No
Interest Rate for Loans Disbursed in Academic Year 2016/2017	3.76% fixed for undergraduates; 5.31% fixed for graduate students	3.76% fixed	5% fixed	6.31% fixed
Interest Subsidized?	No	Yes*	Yes*	No
Grace Period	6 months	6 months	Generally 9 months	6 months
Loan Limit for Academic Year 2016/2017	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 a PLUS Loan: 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		Undergraduates: $5,500/year $27,500 limit Graduate students: $8,000/year $60,000 limit (including undergraduate loans)	Total cost of education, minus any other financial aid received

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Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.

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