Question

Subsidized Stafford Loans:

A. accrue interest while the student is enrolled full-time in school.

B. are paid by the government.

C. are paid by your parents.

D. accrue interest 10 years after graduation.

Answer 1

Answer: A

Explanation:

A Stafford Loan is a student loan offered to eligible students enrolled in accredited institutions of higher education to help finance their education. The terms of the loans are described in Title IV of the Higher Education Act of 1965 (with subsequent amendments), which guarantees repayment to the lender if a student defaults.

accrue interest while the student is enrolled full-time in school. This is to help to help the students in their financial needs and also it help to motivate the students to education. Stafford Loans are available both as

subsidized and unsubsidized loans. Subsidized loans are offered to students based on demonstrated financial need.

Answer 2

Answer: Subsidized Stafford Loans: Are paid by the government. Option B is the most correct option.

Explanation: Stafford loans are loans given to a student or a graduate, to help them fulfill their dreams. Which the borrower is mandated to repay while working.

This loan can come in two different ways, some are subsidized by the government, while some are not. In a subsidized Stafford loan, the borrower is meant to repay some amount of the accrued loan amount while the government repay the remaining. At most times, the government only repays the accrued interest while the borrower repays the amount of loan borrowed.