Which Statement About Direct Unsubsidized Loans Is Correct

question 171

Multiple Choice

Which statement about direct unsubsidized loans is correct?

• A) They do not accrue while the student is in school.
• B) They are taken out by the student's parents, not the student.
• C) All college students are eligible for them, regardless of financial need.
• D) They tend to have lower interest rates than direct subsidized loans.

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Definitions:

Donated

Items or assets that are given without any expectation of payment or benefit in return.

Endowment Fund

Financial assets donated to institutions or organizations with the stipulation that the funds are to be invested and the principal remains intact.

Restricted Fund

Denotes funds that are earmarked for a specific purpose by donors or grantors, limiting their use to certain activities or projects.

Investment Income

The money that an individual or entity earns from various investments, such as dividends, interest, or rental income.