Undergraduate loan comparison chart
| Loan type | Federal Direct subsidized Loan | Federal Direct unsubsidized Loan | Federal Direct Parent PLUS loan | Private Loans |
|---|---|---|---|---|
| Interest rates | 0% while in school. 6.52% fixed rate for loans disbursed after 7/1/2026 | 6.52% fixed rate for loans disbursed after 7/1/2026 | 9.07% fixed rate for loans disbursed after 7/1/2026 | Varies, based on the lender and the credit scores of borrower (and co-signer) |
| Eligibility | Must complete the FAFSA and be enrolled half time. Loans will be prorated based on actual enrollment. | Must complete the FAFSA and be enrolled half time. Loans will be prorated based on actual enrollment. | Must complete the FAFSA, be a parent of an undergraduate dependent student, and be enrolled half time. | Varies |
| Lender | U.S. Department of Education | U.S. Department of Education | U.S. Department of Education | Varies |
| Loan amount (annual maximum) | Determined by FAFSA dependency status and academic level. See below | Determined by FAFSA dependency status and academic level. See below | $20,000 on behalf of each student for new Federal Loan borrowers after July 1, 2026. Students who qualify for an interim exception* may receive up to the total cost of attendance (COA) minus all other accepted aid. | Varies |
| Aggregate limits | Determined by FAFSA dependency status and academic level. See below | Determined by FAFSA dependency status and academic level. See below | $65,000 for new Federal Loan borrowers after July 1, 2026 | Varies |
| Fees | 1.057% after October 1, 2020, and before October 1, 2027 | 1.057% after October 1, 2020, and before October 1, 2027 | 4.228% after October 1, 2020, and before October 1, 2027 | Varies |
| Principal repayment | 6 months after graduating or dropping below half-time enrollment | 6 months after graduating or dropping below half-time enrollment | 60 days after final disbursement per loan. Student may choose to defer payments until six months after the date the student ceases to be enrolled at least half time. | Varies |
| Other considerations | No co-signer needed, may consolidate, no credit-check required | No cosigner needed, may consolidate, no credit-check required, accrues interest while in school, may postpone in-school interest repayments | Parent borrower must pass credit check, an endorser may be used if parent's credit is denied, may consolidate, parent borrower is responsible for repayment | Varies |
*Students may be eligible for an “interim exception” to continue borrowing under the previous regulations. To learn more about the eligibility requirements, see H. R. 1 (One Big Beautiful Bill Act).
Loan amounts and aggregate limits
Loan amount for dependent students (annual maximum)
Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan
| Student status | Annual maximum for Direct Loans | May include Direct Subsidized amount up to |
|---|---|---|
| First year | $5,500 | $3,500 |
| Second year | $6,500 | $4,500 |
| Third year+ | $7,500 | $5,500 |
Federal Parent PLUS Loan
| Student status | Annual maximum for Parent PLUS Loans |
|---|---|
| Interim exception | Total cost of attendance (COA) minus all other accepted aid |
| Not eligible for the interim exception and subject to new limits | $20,000 |
Students may be eligible for an “interim exception” to continue borrowing under the previous regulations. To learn more about the eligibility requirements, see H. R. 1 (One Big Beautiful Bill Act).
Loan amount for independent students (annual maximum)
Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan
| Student status | Annual maximum for Direct Loans | May include Direct Subsidized amount up to |
|---|---|---|
| First year | $9,500 | $3,500 |
| Second year | $10,500 | $4,500 |
| Third year+ | $12,500 | $5,500 |
Aggregate limits
Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan
| Student status | Aggregate limit |
|---|---|
| Dependent students | $31,000 (of which no more than $23,000 may be subsidized) |
| Independent students | $57,500 (of which no more than $23,000 may be subsidized) |
Federal Parent PLUS Loan (only available to dependent-status students)
| Student status | Aggregate limit |
|---|---|
| Interim Exception | None |
| Not eligible for the Interim Exception and subject to new limits | $65,000 |
Students may be eligible for an “interim exception” to continue borrowing under the previous regulations. To learn more about the eligibility requirements, see H. R. 1 (One Big Beautiful Bill Act).