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.
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.