Picking a student loan can feel as confusing as picking a health insurance plan. The options are presented in a whole new language, full of student loan terms you might not know.
If you find it hard to compare student loans, you’re not alone. In our latest survey of student loan borrowers, about 53% of respondents were only “somewhat confident” they knew how student loans worked.
To ensure you get the best out of borrowing, consider our student loan comparison charts below.
Student loan comparison chart for undergraduate borrowers
Undergraduates have three options for borrowing: Direct Subsidized and Unsubsidized Loans, Parent PLUS Loans, and private loans. Let’s see how they stack up.
| Direct Loan (Federal) | Parent PLUS Loan (Federal) | Private Loan | |
| Borrower | Students | Parents | Students, parents |
| Credit check requirement | No, but considers information from the Free Application for Federal Student Aid (FAFSA) | Yes | Yes |
| Cosigner option | None | Uses a guarantor in the case of adverse credit history | Varies by lender |
| Annual borrowing limit | $5,500 to $12,500 | Up to the cost of attendance | Varies |
| Aggregate loan limit | $31,000 to $57,500 | None | Varies |
| Interest rate | Fixed: 4.45% | Fixed: 7.00% | Fixed and variable rates vary |
| Origination fee | 1.066% of total loan amount | 4.264% of total loan amount | Varies |
| Repayment terms | 10 to 30 years | 10 to 30 years | 5 to 25 years |
| Repayment options | 7, including income-driven repayment (IDR) plans | 3 | Varies |
| Payment deferment options | Yes | Yes | Varies |
| Months of forbearance available | No cumulative limit | No cumulative limit | 12 at most |
| Path to student loan forgiveness | Yes | Yes | No |
| Contact for support | Federal Student Aid (FSA) Ombudsman | FSA Ombudsman | Consumer Financial Protection Bureau (CFPB) |
| Key borrower criteria | Minimum half-time enrollment in an eligible program, plus proven financial need (for subsidized loans) | Borrow on behalf of a child enrolled at least half time in an eligible program | Have a strong credit score and debt-to-income ratio or have a cosigner who does |
| Key borrower benefits | Your interest is covered while you’re in school (subsidized loans), plus you have access to flexible repayment plans and protections | You can request a deferment that delays repayment until six months after the student leaves school | You could score a lower interest rate with a creditworthy cosigner |
Student loan information and rates as of February 2018
Student loan comparison chart for graduate borrowers
Graduate and professional students have three options for borrowing: Direct Unsubsidized Loans, Graduate PLUS Loans, and private student loans. Let’s see how they compare.
| Direct Unsubsidized Loan (Federal) | Graduate PLUS Loan (Federal) | Private Loan | |
| Borrower | Students | Students | Students, parents |
| Credit check requirement | No, but considers information from the FAFSA | Yes | Yes |
| Cosigner option | No | Uses a guarantor in the case of adverse credit history | Varies by lender |
| Annual borrowing limit | $20,500 | Up to the cost of attendance | Varies |
| Aggregate loan limit | $138,500, including undergraduate loans | None | Varies |
| Interest rate | Fixed: 6.00% | Fixed: 7.00% | Fixed and variable rates vary |
| Origination fee | 1.066% of total loan amount | 4.264% of total loan amount | Varies |
| Repayment terms | 10 to 30 years | 10 to 30 years | 5 to 25 years |
| Repayment options | 7, including IDR plans | 7, including IDR | Varies |
| Payment deferment options | Yes | Yes | Varies |
| Months of forbearance available | No cumulative limit | No cumulative limit | 12 at most |
| Path to student loan forgiveness | Yes | Yes | No |
| Contact for support | FSA Ombudsman | FSA Ombudsman | CFPB |
| Key borrower criteria | Be enrolled at least half time in an eligible program | Be enrolled at least half time in an eligible program | Have a strong credit score and debt-to-income ratio or have a cosigner who does |
| Key borrower benefits | You have access to flexible repayment plans and protections | You have access to more federal loans after maxing out your Direct Unsubsidized Loan allotment | Loans for special cases, such as for medical school residency, and your borrowing limits could be higher |
Student loan information and rates as of February 2018
Compare student loans and key similarities
There are many ways federal loans and private loans are similar, such as:
- No prepayment penalties
- A six-month grace period when you leave school
- A 0.25% interest rate reduction for autopay
- Serious consequences for defaulting, such as wage garnishment
- Difficult to discharge loans via bankruptcy
- Eligibility for refinancing
Compare student loans and key differences
Private student loans might come with lower interest rates and fewer fees compared to federal student loans. But that’s only if you have a strong credit score and debt-to-income ratio or find a cosigner who does.
Although private lenders might offer you the ability to press pause on your repayment, their deferment or forbearance options likely pale in comparison to the federal government’s.
CommonBond, for example, is one private lender that offers up to 12 months of forbearance for economic hardship. But the Department of Education lets you halt your monthly payments for 12 months at a time if you can’t find work. And you can apply for additional forbearances if you face continued hardship.
Similarly, federal loans come with numerous repayment plans, plus the ability to switch your plan if necessary. Even the most reputable private lenders don’t typically offer more than four repayment plans. And those include in-school payment options.
It’s also worth noting that although federal and private loans are eligible for student loan refinancing, only federal loans are eligible for a Direct Consolidation Loan. A Direct Consolidation Loan could simplify your repayment and give you access to IDR even if it wouldn’t lower your interest rate the way that refinancing could.
When you compare student loans, remember that the best loan isn’t necessarily the one that sounds good right now. Consider how the loan will serve you when you’re in school and when you enter repayment.
For more student loan comparison tools, check out our term comparison calculator to help you decide the best way to approach repayment.
Need a student loan?
Here are our top student loan lenders of 2018!| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
1 = Citizens Disclaimer. 2 = CollegeAve Autopay Disclaimer: All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. * The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers. 3 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply. |
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 | 3.54% - 12.07%2 | Undergraduate, Graduate, and Parents | Visit CollegeAve |
 | 4.11% - 12.19% | Undergraduate and Graduate | Visit Ascent |
 | 4.00% - 11.85%*3 | Undergraduate and Graduate | Visit SallieMae |
 | 2.93% - 9.67% | Undergraduate, Graduate, and Parents | Visit CommonBond |
 | 3.80% - 11.99%1 | Undergraduate, Graduate, and Parents | Visit Citizens |
 | 4.53% - 9.69% | Undergraduate and Graduate | Visit LendKey |