More and more college students have been turning to private student loans over the past ten years or so, and the entire private college loan industry has been thriving in accordance with this trend. Despite the increasing popularity of these kinds of loans, the intelligence of the student-borrowers that have been taking them out has not changed that much. Students never really take the time to learn about these kinds of loans, and rather continue to perceive that they are very similar to the federal loans they take out every year after filling out their FAFSA application. The real truth is that private funding exhibits many differentiating characteristics when compared to federal funding, with the main difference having to do with how they are approved.
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