ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Subsidized Stafford Loans do not accrue interest
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All loans accrue interest
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Unsubsidized Stafford loans, PLUS loans, and consolidation loans, do accrue interest
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None of these
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Detailed explanation-1: -You must request a deferment through your loan servicer, providing required documents for approval and if you meet all eligibility requirements, the deferment will be granted. Check with your loan servicer or ISAC to see if your loan qualifies for a deferment.
Detailed explanation-2: -Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need. Eligibility is determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods.
Detailed explanation-3: -A Federal Direct Unsubsidized Stafford Loan is awarded as a non-need-based loan after all other need-based loans, grants, scholarships and other resources are subtracted or up to the annual maximum loan limit, whichever is lower.
Detailed explanation-4: -For subsidized federal student loans, your interest is paid by the U.S. government while you’re in school. For most other loans, interest continues to accrue, so you will owe more than you borrowed by the time you leave school.