The specifics of federal and private student loans can differ depending on whether you’re an undergraduate or graduate student. These tables outline the key distinctions for federal, private, and parent loans for both types of students.
Compare Undergraduate Student Loan Options 2025 - 2026
| 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 6.39% for the 2025 - 2026 academic year | Fixed at 6.39% for the 2025 - 2026 academic year |
Fixed at 8.94% for the 2025 - 2026 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.
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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 7.94% for the 2025 - 2026 academic year |
Fixed at 8.94% for the 2025 - 2026 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.
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Introduction to Parent PLUS Loans
