Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education, either directly or through guarantee agencies. In 1967, the publicly-owned Bank of North Dakota made the first federally-insured student loan in the United States. The loans that are provided are the Stafford and Perkins loans regulated by the U.S. Department of Education. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues). Federal student loans are not priced according to any individualized measure of risk, nor are loan limits determined based on risk. Rather, pricing and loan limits are politically determined by Congress. Undergraduates typically receive lower interest rates, but graduate students typically can borrow more. This lack of risk-based pricing has been criticized by scholars as contributing to inefficiency in higher education.