why do some students take out private loans when they are eligible for federal student loans at much lower…
why do some students take out private loans when they are eligible for federal student loans at much lower interest rates? a. private loans have much lower interest rates and fees than federal loans. b. they may not be aware of cost differences and their eligibility for federal loans. c. private loans are designed to favor students with very low family incomes. d. private loans dont have to be repaid until 10 years after graduation.
Answer
Brief Explanations:
Federal student loans generally have lower interest - rates. Some students may take private loans because they lack awareness of the cost differences and their eligibility for federal loans. Option A is incorrect as federal loans usually have lower rates. Option C is wrong since federal loans often favor low - income students more. Option D is false as private loan repayment terms vary and are not typically 10 years after graduation.
Answer:
B. They may not be aware of cost differences and their eligibility for federal loans.