Loan Comparison

The One Big Beautiful Bill Act as resulting in changes to federal student aid programs, including borrowers.  As you consider a loan to pay for your educational expenses, use this table to compare various types of loans and their requirements and limitations. 

Loan Comparison Chart

Loan Type

Federal Student
Direct Subsidized and Unsubsidized Loan

Federal PLUS Loan

Private Student Loans

Rates
Determined 

Rates are typically fixed and are set annually by the U.S. Department of Education. 

Rates are typically fixed and are set annually by the U.S. Department of Education.

Rates may be variable or fixed, are based on credit history, and vary by lender/loan program.

Interest Rate and Loan Limit

Undergraduate Students

Interest Rate
2026-2027 -  6.52%
Direct Subsidized and Unsubsidized Loans

Annual limit:
Federal Direct Stafford Loan

Aggregate limit:
$31,000 (not more than $23,000 can be subsidized)

  • Additional Unsubsidized Loan is available for Independent Undergraduate Students and
  • Dependent Students (if their parent is denied a Parent PLUS Loan due to adverse credit)

Aggregate Limit:

For all unsubsidized and subsidized loans:

$57,500 (not more than $23,000 can be subsidized)

An undergraduate student enrolled less than full time for an academic year,  the direct loans will adjusted downward proportionally, based on your level of enrollment.

Graduate PLUS Loan

interest Rate
2026-2027 -  9.07%

As of July 1, 2026, GRAD Plus loans will be eliminated unless the student qualifies for **legacy exception.

Annual Limit: $20,500
Aggregate Limit:
$100,000

 

**Limited Exception/Legacy Provision

A student can continue to borrow under the Graduate PLUS Program if:

  • A student is enrolled in a Graduate program of study as of June 30, 2026
  • Borrowed a Direct Loan for that program of study prior to July 1, 2026
  • Is continuously enrolled at the same school in the same program as of July 1, 2026.

*A graduate student  will still be eligible for the Graduate Unsubsidized Stafford Loan 

 

 

Private/Alternative Loan

Rates are based on an applicant’s credit and may be lower than interest rates for federal student loans

Borrowing limits vary by lender, loan program, and by cost of attendance.

Interest Rate and Loan Limit

* Graduate Students
Direct Unsubsidized Loan

Interest Rate
2026-2027 -  8.07%

As of July 1,2026   
Unsubsidized Stafford Loan

Annual Limit: $20,500 
Aggregate Limit: $100,000

Parent PLUS Loan:

Interest Rate
2026-2027 -  9.07%

As of July 1, 2026, Parent Plus loans will be will have loan limits unless the student qualifies for Limited Exception (Legacy Exception).

Limited Exception: Parents are not subject to the new PLUS loan limits (for up to three academic years or the remainder of the student's expected time to credential, whichever is less)

  • A student is continuously enrolled in a program of study they were enrolled in as of June 30, 2026
  • Either parent borrowed a PLUS Loan that was disbursed for the same program before July 1, 2026, OR
  • The student borrowed a Direct Loan for that program of study prior to July 1, 2026
  • The student is continuously enrolled at the same school in the same program as of July 1, 2026.

 

 

Interest Rate and Loan Limit

 

NEW Parent PLUS Loan Borrowers 

interest Rate
2026-2027 -  9.07%

Loan Limit: $20,000 per dependent student, per year

Aggregate Limit: $65,000 per dependent student in total 

Please note that the new aggregate limit of $65,000 means borrowing the maximum for four years will cause the parent(s) to reach the aggregate limit before the student completes the four years it will take to complete their degree.

 

Borrower

Student is the primary borrower and responsible for repayment.

Parent is responsible for
Parent PLUS repayment.

Graduate student is responsible for Grad PLUS repayment 

Student and cosigner, if
applicable, are responsible for repayment (some lenders have education loans for parents or friends).

Origination Fees

1.057% on or after October 1, 2025 - before September 30, 2026) 

4.228% on or after October 1, 2025 - before September 30, 2026)

Varies with lender. Some
lenders have no origination fees. 

Credit Review

No debt-to-income analysis or credit check performed.

No debt-to-income analysis performed, but a credit report is reviewed.

Comprehensive credit approval process.

Repayment

 A student that has not used a prior 6-month grace period and is enrolled at least half-time will automatically have an In-School Deferment while in school.  The student  may pay the interest on unsubsidized direct loans while you are in school. 

Repayment begins six months after graduation, withdrawal from school, or dropping below half-time.

Generally, repayment takes 10 to 25 years, depending on the repayment plan chosen. 

Graduate PLUS repayment is similar to Federal Undergraduate Loan repayment.

Parent PLUS repayment
begins within 60 days of final loan disbursement. The Parent may request a deferment during the loan process which will allow them to defer payments while in student is in school.  If you did not request it during the loan period you can complete the Parent PLUS Borrower Deferment Request

Generally, repayment takes 10 to 25 years, depending on the repayment plan chosen.

Generally, you are not
required to make payments while in school,  but you can choose to do so.

Repayment begins six months after graduation, withdrawal
from school, or dropping
below half-time.

Repayment terms vary by
lender.