ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Federal student loans generally offer higher interest rates which remain fixed over the term of the loan
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Federal student loans do not need to be repaid if the borrower runs into financial difficulty and goes bankrupt
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Federal student loans require a credit check
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Federal student loans offer more flexible repayment terms
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Detailed explanation-1: -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-2: -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.
Detailed explanation-3: -Unsubsidized and subsidized student loans often have the lowest interest rates and best repayment terms.
Detailed explanation-4: -According to the Indian Banks’ Association norms, banks offer loans of up to Rs 10 lakh for courses in Indian colleges and up to Rs 20 lakh for studies abroad. For undergraduate courses, the fees could be Rs 5-10 lakh, while for a five-year medical course at a private college, this could go up to Rs 50 lakh.