A student needs to temporarily pause federal student loan payments after graduation. They are considering different options. Which of the following options would prevent interest from accruing on their Federal Direct Subsidized Loans during the approved period?

✓ Correct Answer: Option B

During periods of approved deferment (such as Unemployment Deferment), the U.S. Department of Education pays the interest on Federal Direct Subsidized Loans. Interest continues to accrue on all loan types during forbearance periods, including General and Administrative Forbearance.