🏫 College Advising

Which of the following is a characteristic typically associated with private student loans, distinguishing them from federal student loans?

A Eligibility is based primarily on the student's financial need, as determined by the FAFSA.
B They often require a creditworthy co-signer, especially for students with limited credit history.
C Interest rates are generally fixed and federally subsidized for all borrowers.
D Repayment options include income-driven repayment plans and Public Service Loan Forgiveness (PSLF).

✓ Correct Answer: Option B

Private student loans are credit-based and often require a co-signer if the student has insufficient credit history. They typically lack the borrower protections and flexible repayment options of federal loans.

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