Question

oliver is looking to go to college. his family does, not have very much money, so he qualifies for need - based financial as oliver needs to spend most of his time working at his full - time job, so he will only be able to take a few classes per semester. oliver’s parents have poor credit scores and cannot afford to take on any more debt. based on oliver’s situation, recommend a federal loan which would be appropriate for him.
a. subsidized stafford loan
b. unsubsidized stafford loan
c. private student loan
d. plus loan

please select the best answer from the choices provided

a
b
c
d

Explanation:

1. Subsidized Stafford loans are federal need-based loans where the government pays interest while the student is in school (and during grace/deferment periods), which aligns with Oliver's need-based eligibility and limited ability to take on debt costs while working and attending school part-time.
2. Unsubsidized Stafford loans are not need-based, and interest accrues immediately, adding to debt burden which Oliver cannot afford.
3. Private student loans rely on credit scores, which Oliver's parents have poor ratings for, making this inaccessible.
4. PLUS loans require a good credit history, which Oliver's parents lack, and they are meant for parents/graduate students, not fitting Oliver's situation.

Answer:

a. subsidized Stafford loan