What Is the Difference Between Federal Subsidized and Unsubsidized Loans

question 18

Multiple Choice

What is the difference between federal subsidized and unsubsidized loans?

• A) Subsidized loans do not require repayment until 12 months after graduation,whereas unsubsidized loans require repayment immediately upon graduation
• B) With a subsidized loan,the interest on the loan is paid by the government if the student is enrolled in school at half-time status or greater; an unsubsidized loan requires the student to pay the interest on the loan that has accrued while still in school
• C) An unsubsidized loan allows students to borrow a greater amount of money than subsidized loans
• D) All of these

---

Definitions:

Gasoline Prices

The cost per unit of gasoline, influenced by factors like crude oil prices, refining costs, taxes, and demand.

Law of Diminishing Returns

The economic principle stating that as more units of a factor of production are incrementally added, the additional output from those units will eventually decrease.

Tenth Hour of Study

A concept in educational psychology indicating the diminishing returns of productivity or learning efficiency after prolonged periods of study.

Productive

Refers to the efficiency and effectiveness with which inputs are transformed into outputs, often measured by the rate of output per unit of input.