5
QuizLong Text

Student Loans

Question 5 • SEPHS - BUS 240 - Personal Finance (Summer)

Describe some of the characteristics of federal student loans.

Answer

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.

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