Final answer:
It is false that choosing an unsubsidized loan is safer than a subsidized loan; subsidized loans have the advantage of the government paying the interest under certain conditions, reducing the overall debt burden.
Step-by-step explanation:
It is false that it would be safer to choose an unsubsidized loan rather than a subsidized loan. The key difference between the two is the interest payment responsibility. With a subsidized loan, the government covers the interest while the student is in school at least half-time, during the grace period, and during any approved deferment periods. However, with an unsubsidized loan, interest accrues from the time the loan is disbursed, and the student is responsible for paying all of the interest that accumulates.
There are times when an unsubsidized loan may be the only option available, especially for students who do not demonstrate financial need. Still, when given a choice, a subsidized loan may be the better financial decision due to the interest savings during the periods when the government is covering the interest payments. It's essential for students to understand how these types of loans will affect their debt burden after graduation.