The Guide | 9
Loan
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
aid, availability of funds at school
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 (see chart
on page 11)
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
Direct Stafford
Loans
Same as above
Same as above
Same as above
Lender is the U.S. Department
of Education; repay Department
Between 10 and 30 years to repay,
depending on amount owed and
type of repayment plan selected
FFEL PLUS Loans
Parents of depen-
dent undergraduate
students enrolled at
least half-time* (see
dependency status);
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
Direct PLUS Loans Same as above
Same as above
Same as above
Same as for Direct Stafford
Loans above, except that Income
Contingent Repayment Plan is
not an option
STUDENT LOAN COMPARISON