Student and Parent Loans Comparison

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Program Eligibility Award Amounts Interest Rate Lender/Length of Repayment
Federal Perkins Loans Undergraduate and graduate students; do not have to be enrolled at least half-time*

Undergraduate-up to $4,000 a year (maximum of $20,000 as an undergraduate)

Graduate-up to $6,000 a year (maximum of $40,000, including undergraduate loans)

Amount actually received depends on financial need, amount of other

5 percent

Lender is your school

Repay your school or its agent

Up to 10 years to repay, depending on amount owed

FFEL Stafford Loans

Undergraduate and graduate students; must be enrolled at least half-time*

Depends on grade level in school and dependency status

Financial need not necessary

Changes yearly; for 2005-06 was 5.3 percent for loans in repayment

For those with financial need, government pays interest during school and certain other periods

Lender is a bank, credit union, or other participating private lender

Repay the loan holder or its agent

Between 10 and 25 years to repay, depending on amount owed and type of repayment plan selected

FFEL PLUS Loans

Parents of dependent undergraduate students enrolled at least half-time*; parents must not have negative credit history

Student's Cost of Attendance* - Other aid student receives = Maximum loan amount

Changes yearly; for 2005-06, was 6.1 percent for loans in repayment; government does not pay interest

Same as for FFEL Stafford Loans above