Which statement about direct subsidized loans is correct?
A) They are provided by private institutions such as banks.
B) They usually have a higher interest rate than other types of loans.
C) Students qualify for this type of loan based on academic performance.
D) Interest on this type of loan does not accrue while you are in school.

Question

Quizplus · Accepted Answer

Direct subsidized loans are federal loans for which the government pays the interest while the borrower is in school, during the grace period, and during any deferment periods. This contrasts with unsubsidized loans, where interest accrues during all periods.

Which Statement About Direct Subsidized Loans Is Correct