🏫 College Advising

A significant disadvantage of private student loans compared to federal student loans is often:

A They are exclusively available to graduate students.
B They typically offer less flexible repayment options and higher, variable interest rates.
C They do not require a credit check or co-signer.
D They are always subsidized, meaning interest does not accrue during in-school periods.

✓ Correct Answer: Option B

Private loans generally lack the borrower protections, flexible repayment plans (like income-driven repayment), and fixed interest rates often associated with federal student loans. They often have variable rates and require strong credit or a co-signer.

Related College Advising Questions