177439
AssignmentMultiple Choice

Employment and Education

Question 177439 • * HSA 26-27 Economics

Based on the reading, what is the key difference between subsidized and unsubsidized student loans?

Answer
A
Students pay interest on subsidized loans while in college.
B
Students do not pay interest on subsidized loans while in college.
C
Students pay a fixed interest rate on unsubsidized loans.
D
Students do not pay interest on unsubsidized loans while in college.

Explanation

With a subsidized loan, the government covers the interest while the student is enrolled in school at least half-time. An unsubsidized loan accrues interest during that time, so the key difference is that students do not pay interest on subsidized loans while in college.

AI-written and checked against the verified answer.

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