A federal direct subsidized loan has tremendous advantages over other types of loans,including

Question

Quizplus · Accepted Answer

Unlike other types of loans, federal direct subsidized loans offer the advantage of deferring the interest while the borrower is still in school. This means that the borrower does not have to worry about making interest payments while studying and can focus on their education. Therefore, option A is the correct answer. Option B is incorrect as it mentions low monthly payments but also a large balloon payment after five years, which can be difficult to manage. Option C is incorrect as the add-on method is not used to determine monthly payments for federal direct subsidized loans.

A Federal Direct Subsidized Loan Has Tremendous Advantages Over Other