Student Loans Or Private Loan?

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Student loans are very beneficial when one decides to enroll in college. In some occasions, one is not financially stable enough in order to enroll in college, and this is where student loans can help minimize the financial burden on students. Kyle should consider obtaining a loan that includes simple annual interest rate. This type of interest does not include any interest that has been accumulated on the loan. Simple interest would cause the loan’s first year of payment to be lower that it would have been if Kyle would have obtained a loan with compound interest instead. I would suggest that Kyle obtain a federal loan as opposed to a private loan. A federal loan is a better option for Kyle because it is more affordable that a private loan.

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