Before, most college loans are offered by the federal government.  Now, aside from the federal government, schools have already established linkages with private corporations to offer college loans.  The bureaucracy associated with working with the government translated into a stronger preference of schools for private corporations in terms of providing college loans for their students.
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Private student loan and federal student loan are the two types of college loan that are commonly known and availed.  When student loans were first introduced in the society, only the federal government offered student loans.  But the hassles of paperwork and bureaucracy in working with the federal government prompted the increase of private student [...]