they have lower interest rates and can be paid back with a lower out of pocket cost
Step-by-step explanation:
Student loans are issued as a kind of financial aid that assist students in their quest to acquire higher education. Private student loans are offered by the private-sector lenders. The alternative to this is a Federal loan.
Actually, private student loans are issued at a lower interest rate. Option of a fixed or variable interest rate may be offered on privately issued student loans. This offers a lower out of pocket cost, hence the answer.
