What is the main benefit of taking out a federal student loan instead of a private loan?
Select a response.
You can defer paying your loan until 5 years after graduation.
You may qualify for loan forgiveness after you graduate.
You will have a higher interest rate for a federal student loan.
You can pay the principal down faster on a federal student loan.
Question & Answer
What is the main benefit of taking out a federal student loan instead of a private loan?
1 Answer
Verified archiveThe correct answer is: You may qualify for loan forgiveness after you graduate.
Explanation: One of the main benefits of federal student loans is that they often come with options for loan forgiveness programs, especially for those who work in public service or low-income professions. Private loans typically do not offer the same forgiveness options, making federal loans a more favorable choice for many borrowers.