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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
Direct Subsidized loans are designed to help undergraduate students with financial need. The Department of Education pays the interest on these loans while the borrower is in school at least - half - time, during the grace period, and during deferment periods. Direct Unsubsidized loans do not have this interest - subsidy feature; the borrower is responsible for the interest from the time the loan is disbursed.
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B. Direct Subsidized