Which statement best describes how private student loans are different from federal student loans?

• A. Private student loans do not require a credit check, while federal student loans do.
• B. Private student loans always have lower interest rates than federal student loans.
• C. Private student loans are offered by banks and other private lenders, while federal student loans are funded by the government.
• D. Private student loans offer more flexible repayment options than federal student loans.

Answer: (C)

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1. Step 1: Understand the context of the question. This question is not related to Financial Accounting but rather to student loans, which are a form of personal finance. As a Financial Accounting tutor, I focus on accounting principles and problem-solving within that domain.
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