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A low-interest loan for students who demonstrate financial need is a(n):

A. Indirect Subsidized Loan.
B. Direct Pell Loan.
C. Indirect Pell Loan.
D. Direct Subsidized Loan.

1 Answer

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The answer is: D. Direct Subsidized Loan

The main characteristic of a Direct Subsidized Loan is that the loan interest is set at a fixed rate by the government and would not be accrued. This means that even if the student in financial needs somehow late in making payments, the amount of his/her total loan would not be increased.




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