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Which of the following is a true statement about student loans?

A) All student loans are provided by the U.S. government.
B) All student loans have fixed interest rates.
C) Interest payments on some loans are deferred until the students graduate and enter the
workforce.
D) Interest is tax deductible for those at all income levels.

1 Answer

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Final answer:

The correct statement about student loans is that interest payments on some loans are deferred until after graduation. Not all student loans are from the U.S. government, nor do they all have fixed interest rates, and interest deductions are subject to income limits.

Step-by-step explanation:

Among the statements provided about student loans, the accurate one is C) Interest payments on some loans are deferred until the students graduate and enter the workforce. This is true because many federal student loans offer the option of deferring interest payments while a student is still in school and for a short period after graduation, commonly known as the grace period. However, not all of these points hold true universally.

A) All student loans are not provided by the U.S. government, as there are also private student loans available from various financial institutions. B) Not all student loans have fixed interest rates; some have variable rates that can change over time. D) Interest being tax deductible is subject to income limits and tax filing status; it's not deductible for those at all income levels.

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