Question 5 • SEPHS - BUS 240 - Personal Finance (Summer)
Answer:
Federal student loans are government-funded and generally have fixed interest rates, flexible repayment options, and protections such as deferment or possible forgiveness. Subsidized loans are need-based, and the government pays interest during eligible in-school and grace periods. Unsubsidized loans are not need-based, and interest accrues while the student is in school.