A student qualifies for both a Federal Direct Subsidized Loan and a Federal Direct Unsubsidized Loan. During the in-school deferment period, which statement accurately describes the interest accrual on these loans?

✓ Correct Answer: Option B

During in-school deferment, the government pays the interest on Federal Direct Subsidized Loans, meaning no interest accrues for the student. Interest, however, accrues on Federal Direct Unsubsidized Loans from the time they are disbursed.