Question

What is one benefit of privately issued student loans?

a. they are issued in cooperation with the students University to reduce cost and paperwork
B. they have lower interest rates and can be paid back with a lower out of pocket cost
C. they are backed by the US government to ensure greater Financial Security
D. they are available to any student who meets lending standards regardless of financial need ​

Answer 1

they have lower interest rates and can be paid back with a lower out of pocket cost

Explanation:

Student loans are issued as a kind of financial aid that assist students in their quest to acquire higher education. Private student loans are offered by the private-sector lenders. The alternative to this is a Federal loan.

Actually, private student loans are issued at a lower interest rate. Option of a fixed or variable interest rate may be offered on privately issued student loans. This offers a lower out of pocket cost, hence the answer.