Question

Jim is researching different sources to fund his college education. Jim is torn between a federal loan and a private loan. With his parents as co-signers, Jim can receive a lot more money from a bank than he will from a federal loan. Which loan should Jim choose and why?



Jim should choose the federal loan since he will not have to pay interest if he attends a public university.
Jim should choose the federal loan since he may qualify for lower interest rates.
Jim should choose the private loan since his parents will not have to repay the loan