🏫 College Advising

Which of the following Federal Direct Loans does NOT accrue interest while the student is enrolled at least half-time, during the grace period, or during deferment?

A Direct PLUS Loan for Graduate Students
B Direct Unsubsidized Loan
C Direct Subsidized Loan
D Direct PLUS Loan for Parents

✓ Correct Answer: Option C

Interest on Direct Subsidized Loans is paid by the U.S. Department of Education during specific periods, such as while the student is enrolled at least half-time, during the grace period, or during deferment, making them a more favorable option for students with financial need.

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