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If a person qualifies, why is it better to accept a subsidized loan before an unsubsidized loan?

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If a person qualifies, why is it better to accept a subsidized loan before an unsubsidized loan

If a person qualifies, why is it better to accept a subsidized loan before an unsubsidized loan?

Options:

  • A) Subsidized loans are in your parent’s name which means you do not have to pay them back.
  • B) The accrued (or added) interest on a subsidized loan is paid by the Department of Education while you are enrolled at least half time.
  • C) Since subsidized loans have higher borrowing limits, you can pay for more classes.
  • D) Subsidized loans have zero interest.



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1 Answer

  1. Correct Answer: B) The accrued (or added) interest on a subsidized loan is paid by the Department of Education while you are enrolled at least half time.