Student Loans


Student Loan Comparison Chart

Use the following chart to compare the various types of student loans.

* Starting on July 1, 2006, interest rates will rise and the limits for Stafford loans will be raised. Read “Student Loan Interest Rates Jump on July 1st” on eMediaWire for more details.
** The prime rate as of January 2006 was 7.25%. Financial figures are based on 2004-05 academic year.
Loan Subsi- dized? Need- based Limits* Interest Rate** Grace Period Repay- ment Period Notes
Federal Loans
Stafford Varies Only subsized
Undergrad (UG): $2,625 - 5,500/yr maximum: $23,000

Grad (G): $18,500/yr
max including UG: $138,500
3.1% more than yield on a 91-day Treasury bill; Max: 8.5% (4.17% in 04-05) 6 months 5–10 years Typically 5% origination fee and 3% insurance fee on subsidized amount. 6.5% in fees on unsubsidized. Can be consolidated.
Perkins Yes Yes UG: $4,000/yr max: $15,000
G: $5,000/yr max including UG: $30,000
5% 9 months 10  years Can be forgiven for certain professions.
Plus No No None, except can’t exceed cost of attendance 3.1% more than yield on a 91-day Treasury bill / max: 9%(4.17% in 04-05) No 5-10 years
    Loans goes to parents and is credit-based. Repayment starts within 60 days of loan initiation.
Alternative Loans
TERI No No $2,000 minimum. Prime plus 1.5-2%; Adjusted monthly; No cap No Up to 25 years Private, credit-based loans. 5-10% of loan amount charged for guarantee fee.
EXCEL No No $2,000 minimum up to cost of education. Prime plus 0.5% for 1st yr; 1% subsequent yrs; Adjusted monthly No (but can choose interest only while in school) Up to 20 years Private, credit- based loans guarantee fee of 7%.
No No Minimum of $500;
UG: $100,000
G: $150,000 Select grad school health disciplines: $220,000
Prime plus based on student’s credit rating and school attended 6 months Standard is 15 years; Can go as high as 30 years, depending on amount borrowed Cosigner can get better rates. Can be packaged with Stafford loans for repayment. 25% interest rate reduction for automatic bank withdrawals. No disburse-ment fee.


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