Question

How is a federal loan different from a private loan for an education?

A federal loan is available for any student who meets the government’s lending standards. A private loan is only available for students who show a need.
A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank’s lending standards.
A federal loan can only be used to pay for a student’s tuition. A private loan can be used to pay for a student’s tuition and any other expenses.
A federal loan can be used to pay for a student’s tuition and any other expenses. A private loan can only be used to pay for a student’s tuition.

Answer 1

B

Step-by-step explanation:

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Answer 2

A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank’s lending standards.

Step-by-step explanation:

Federal student loans are funded by the government using public resources. The terms and conditions of Federal student loans are as set out in the law governing the loans. Qualification, as set out, is on a need basis. Federal student loans have more benefits, including low fixed interest rates and demand for repayment after leaving college.

Private loans are issued by other lenders, such as commercial banks. Qualification for such a loan is meeting the terms and conditions set out by the lending organizations. Banks and other lenders always insist on repayment while students are still in school. Private loans are much expensive compared to federals loans.