When Jim was accepted at a private university, he quickly realized that he wouldn't be able to afford the tuition on his own. With the help of a financial advisor, he was able to obtain a direct subsidized loan from the federal government. The interest on Jim's loan will begin to accrue while he is in college. Who is responsible for paying the interest on Jim's direct subsidized loan while he attends school?

Question

Quizplus · Accepted Answer

The federal government pays the interest on direct subsidized loans while the borrower is in school, during the grace period, and during any period of deferment.

When Jim Was Accepted at a Private University, He Quickly