🏫 College Advising

Which type of federal student loan accrues interest while the student is enrolled at least half-time, during deferment, or during the grace period?

A Federal Pell Grant
B Direct Subsidized Loan
C Direct Unsubsidized Loan
D Federal Work-Study

✓ Correct Answer: Option C

Direct Unsubsidized Loans accrue interest from the time they are disbursed, including while the student is in school. The borrower is responsible for paying all accrued interest.

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