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What Is the Difference Between Federal Subsidized and Unsubsidized Loans

Question 33

Multiple Choice

What is the difference between federal subsidized and unsubsidized loans?


A) Subsidized loans do not require repayment until 12 months after graduation,whereas unsubsidized loans require repayment immediately upon graduation.
B) With a subsidized loan,the interest on the loan is paid by the government if the student is enrolled in school at half-time status or greater; an unsubsidized loan requires the student to pay the interest on the loan that has accrued while still in school.
C) An unsubsidized loan allows students to borrow a greater amount of money than subsidized loans.
D) All of the options are correct.

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