Question

A. subsidized b. unsubsidized c. grants 1. this type of federal financial aid generally does not have to be paid back: _______________ 2. to qualify for this type of federal loan, a student must show demonstrated financial need: ____________________ 3. with this type of federal loan, you are responsible for interest accruing as soon as the loan is disbursed: _____________________

Answer 1

1. c. Grants

2. b. Subsidized financial loans

3. a. Unsubsidized financial loans

Grants: refer to funds that are given by grant makers to individuals for a specific purpose. These funds are not repayable. Most of the grants require compliance to certain conditions and regular reporting.

Subsidised Federal loans: refer to loans that are given to students who need financial aid for and other college expenses. Interest on this loan doesn't fall due until the time limit (150% of the program's tenure) on the loans is over. This loan is available only to undergraduate students

Unsubsidized federal loans: are loans on which interest begins to accumulate as soon as the loan is disbursed. These loans are available to graduate and undergraduate students.