🏫 College Advising

For a Federal Direct Subsidized Loan, when does the federal government pay the interest on behalf of the student?

A Only during the repayment period, if the student makes payments on time.
B During periods of enrollment (at least half-time), the grace period, and authorized deferment periods.
C When the loan is first disbursed and for the first six months after graduation.
D Interest is never paid by the government; it's always the student's responsibility.

✓ Correct Answer: Option B

With a Direct Subsidized Loan, the U.S. Department of Education pays the interest while the student is in school (at least half-time), during the grace period, and during periods of deferment. This is a key benefit for students with demonstrated financial need.

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