Question

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what is the main difference between subsidized and unsubsidized federal student loans?
interest on subsidized loans is paid by the government while you are in school
subsidized loans require a credit check; unsubsidized do not
subsidized loans are only available to graduate students
unsubsidized loans have lower interest rates

Explanation:

Subsidized federal student loans have interest covered by the U.S. government during in-school enrollment (and other deferment periods), while interest on unsubsidized loans accrues immediately and is the borrower's responsibility at all times. The other options are incorrect: neither loan type requires a credit check for undergraduate students, subsidized loans are for undergraduate students with financial need, and unsubsidized loans do not have lower interest rates.

Answer:

A. Interest on subsidized loans is paid by the government while you are in school