Which of the following loans will typically offer the lowest interest rate?

Step 1 : Introduction to the question "Which of the following loans will typically offer the lowest interest rate? "

Student loans in the United States are a form of financial aid used to help more students access higher education. Student loan debt has been growing rapidly since 2006, rising to nearly USD 1.4 trillion by late 2016, roughly 7.5% GDP.

Step 2 : Answer to the question "Which of the following loans will typically offer the lowest interest rate? "

Federal loans to students: Undergraduates typically receive lower interest rates, but graduate students typically can borrow more. This lack of risk-based pricing has been criticized by scholars as contributing to inefficiency in higher education.

Step 3 : Other interesting facts related to the question "Which of the following loans will typically offer the lowest interest rate? "

Unsubsidized federal student loans are also guaranteed by the U.S. Government, but the government, while controlling (setting) the interest rate, does not pay interest for the student, rather the interest accrues during college. Nearly all students are eligible for these loans regardless of financial need (on need, see Expected Family Contribution).

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