Loan Comparison
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. If you consider credit-based, unsubsidized, and private loans, please also review:
» Questions to Ask Your Lender
» Comparison Worksheet (.pdf)
Loan Type | Federal Student Undergraduate Loan | Federal PLUS Loan | Private Student Loans |
---|---|---|---|
Interest Rate |
Rates are typically fixed and are set annually by the U.S. Department of Education. 2021-2022 - 3.73% for Direct Stafford Loan and Undergraduate Unsubsidized Loan 2021-2022 - 5.28% for Graduate Unsubsidized Loan Rates may be lower than interest rates for private student loans. |
Rates are typically fixed and are set annually by the U.S. Department of Education. (see 1 below) 2021-2022 - 6.28% for Parent PLUS Loan and Graduate PLUS Loan Rates may be lower than interest rates for private student loans. |
Rates may be variable or fixed, are based on credit history, and vary by lender/loan program. Rates are based on an applicant’s credit and may be lower than interest rates for federal student loans |
Borrower |
Student is the primary borrower and responsible for repayment. |
Parent is responsible for Graduate or professional |
Student and cosigner, if |
Origination Fees |
For 2021-22: 1.057% |
For 2021-22: 4.228% |
Varies with lender. Some |
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. |
Loan Limits |
Annual and aggregate limits are set by the federal government and are based on grade
level |
Annual limit is equal to the cost of attendance minus financial aid received. No aggregate limit. |
Borrowing limits vary by lender, loan program, and by cost of attendance. |
Repayment |
Generally, you are not Payment begins six months after graduation, withdrawal from school, or dropping below Generally, repayment takes 10 to 25 years, depending on the |
Graduate PLUS repayment is similar to Federal Undergraduate Loan repayment. Parent PLUS repayment Parent may request a Generally, repayment takes 10 to 25 years, depending on the |
Generally, you are not Generally, repayment begins six months after graduation, withdrawal Repayment terms vary by |
Deferment |
Multiple deferment options available. (see 2 below) |
Multiple deferment options available. (see 2 below) |
Deferment options vary by |
Forbearance |
Multiple forbearance options available (see 2 below), but federal student loans typically offer forbearance intervals of up to 12 months at a time for up to a total of three years |
Multiple forbearance options available (see 2 below), but federal student loans typically offer forbearance intervals of up to 12 months at a time for up to a total of three years. |
Forbearance options vary by lender and loan program. (see 3 below) |
Death or Disability Forgiveness |
Loan forgiveness in the event of death or disability |
Loan forgiveness in the event of death or disability |
Some lenders offer loan |
1. For current federal loan interest rates, visit Federal Student Loan Interest Rates or contact the Financial Aid Services department at FIT.
2. Interest will continue to accrue during periods of deferment or forbearance and it will be capitalized (added to the principal loan balance) at the end of each deferment or forbearance period.
3. Interest will continue to accrue during periods of deferment or forbearance. Interest capitalization policies may vary by lender.