Direct subsidized loans are made only to undergraduates who demonstrate financial need.

Question

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Direct subsidized loans are designed to help undergraduate students who have financial need, which means they have not exceeded the cost of attendance at their school. The U.S. Department of Education pays the interest on these loans while the borrower is enrolled in school at least half-time, during the grace period, and during deferment periods.

Direct Subsidized Loans Are Made Only to Undergraduates Who Demonstrate