Question

Madelyn’s parents paid for her first two years of college, but her dad lost his job, and now they can’t pay for her final year. Madelyn is distraught and thinks she may have to drop out of college. Which type of loan could help Madelyn?

Answer 1

Answer:

Student loan.

Explanation:

Student loans are given to assist students pay for university education. Loans can cover turion, living expenses, and books.

Interest rate charged is very low and repayment can be deferred till after the student graduates.

The most common type of student loan are federal loans(offered by the federal government). They have a lower interest rate than student loans offered by private institutions like banks, schools and credit unions.

Answer 2

Answer:

The correct answer is: Student loan.

Explanation:

Student loans are given to college students to cover their school expenses. The advantage of this type of loan is that the repayment method allows students to start covering the debt after graduating typically for 120 months or 10 years making smaller payments at the beginning of the term and covering higher installments by the end.