Question

check your knowledge
which loan type provides interest subsidy, meaning department of education (ed) pays your interest while youre in school, during your grace period, and during deferment?
direct unsubsidized
direct subsidized
none of the above

Explanation:

To determine the correct loan type, we analyze the options:

• Direct Unsubsidized loans do not have interest subsidized; the borrower is responsible for interest during all periods.
• Direct Subsidized loans have the Department of Education pay the interest while the borrower is in school, during the grace period, and during deferment.
• "None of the above" is incorrect as Direct Subsidized meets the criteria.

Answer:

B. Direct Subsidized