Which statement or statements accurately describe characteristics of subsidized Stafford loan? I. grace period during which payments are not due II. based on student need III. student is responsible for all interest for the lifetime of the loan.

A subsidized Stafford loan is based on the student’s financial need, so statement II is accurate. It also has a grace period after the student leaves school when payments are not due, making statement I accurate. Statement III is false because the federal government pays interest during eligible periods such as in-school enrollment and the grace period.

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