🏫 College Advising

When comparing federal student loans, what is a distinguishing characteristic of a Subsidized Stafford Loan compared to an Unsubsidized Stafford Loan?

A Subsidized loans have a higher interest rate.
B Interest on Subsidized loans does not accrue while the student is enrolled at least half-time.
C Unsubsidized loans are only available to graduate students.
D Only Subsidized loans require a credit check for eligibility.

✓ Correct Answer: Option B

A key benefit of Subsidized Stafford Loans is that the government pays the interest while the student is in school at least half-time and during grace periods, unlike Unsubsidized loans where interest accrues immediately.

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