ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -But lenders can’t seize a degree. So student loan interest rates are typically higher than secured loan rates because the lender’s risk is higher.
Detailed explanation-2: -All federal student loans and most private student loans charge simple interest instead of compound interest. With simple interest, you pay interest only on your principal amount and don’t accrue interest on your unpaid interest. Because of this, you pay less interest over the life of your loan.
Detailed explanation-3: -In general, private student loans have lower interest rates than personal loans. They can also offer the choice of a fixed or variable interest rate.
Detailed explanation-4: -No. Since private student loans aren’t controlled by the government, borrowers don’t have the same protections they do with federal student loans. So, while private loan lenders may have the power to forgive student loans, they’re certainly not going to let you or your student loans off the hook.