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Negative amortization will occur when the a. borrower goes into default. b. payments in the early years do not cover the amount of interest due. c. loan is paid off early. d. term of the loan is extended.

User Lobo
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Unsubsidized federal loans requires you to make loan payments while attending school. With unsubsidized loans, students accumulate interest and are responsible for paying it all off, the interest will keep adding until the loan is paid off. These loans are on the low-cost, fixed rate side of the loan spectrum. i think that the answer? hope it helps

User Deepan Prabhu Babu
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