Final Answer:
"Compared to federally funded loans, private loans have interest rates that are higher and more variable (allowing them to rise even higher)." true
thus corect option is a. true
Step-by-step explanation:
Federally funded loans and private loans differ significantly in terms of interest rates. The statement is accurate as private loans generally come with higher and more variable interest rates, allowing them to increase further over time. This distinction has substantial implications for borrowers, influencing the overall cost and predictability of their loan repayment.
Private loans are offered by banks, credit unions, and other financial institutions, and their interest rates are determined by the lender based on the borrower's creditworthiness. Unlike federally funded loans, private loans lack the fixed interest rates and borrower protections that government-backed loans provide. The variability in interest rates means that borrowers may face fluctuations in their monthly payments, making it challenging to budget and plan for repayment.
thus corect option is a. true