Student Loan Consolidation compare: Subsidized Federal Loans VS Unsubsidized Federal Loans

Below is a brief Student Loan Consolidation Comparison of Subsidized Federal Loans and Unsubsidized Federal Loans:

	Federal Stafford Unsubsidized	Federal Stafford Subsidized
Borrower	Student	Student
Qualification Criteria	No credit check, No cosigner required	No credit check No cosigner required
Eligibility Criteria	Non-need based; school determines eligibility	Need-based; school determines eligibility
Starting Interest Rate	6.80%	6.80%
Rate Index	91-day T-bill +1.7%	91-day T-bill + 1.7%
Rate Cap	8.25%	8.25%
Discounts	0.25% with automatic debit 2% after 48 consecutive on-time payments	0.25% with automatic debit 2% after 48 consecutive on-time payments
Guarantee Fee	1% (usually waived)	1% (may be waived)
Origination Fee	3%	3%
Annual Loan Limits
First Year	$2,625	$2,625
2nd Year	$3,500	$3,500
3rd Year	$5,500	$5,500
4th Year	$5,500	$5,500
Graduate	$18,500	$8,500
Aggregate Loan Limits	$23,000 (undergrad) $138,500 (graduate)	$23,000 (undergrad) $138,500 (graduate)
Prepayment Penalties	None	None
Repayment Begins	6 months after student graduates or falls below half-time status	6 months after student graduates or falls below half-time status
Repayment Term	10 years	10 years
Eligible for consolidation	Yes	Yes