Question

question 2 of 3
please read the following questions carefully and choose an answer from the choices below. after you select an answer, select \continue.\
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:

Direct Subsidized loans are need - based. The Department of Education pays the interest on these loans while the borrower is in school (at least half - time), during the grace period (usually six months after leaving school), and during deferment periods. In contrast, for Direct Unsubsidized loans, the borrower is responsible for the interest from the time the loan is disbursed, even if they are in school or in deferment.

Answer:

B. Direct Subsidized