If you have to start paying interest immediately on a student loan, you probably have a ____ loan.

Question

Quizplus · Accepted Answer

Unsubsidized loans require the borrower to pay the interest that accrues while they are in school, meaning that interest payments begin immediately. Subsidized loans, on the other hand, do not accumulate interest while the borrower is in school. Fixed and variable refer to the interest rate structure of the loan, and are not indicative of when interest payments begin.

If You Have to Start Paying Interest Immediately on a Student