A freshman does. The reason is that the money can be used by the freshmen for a considerably longer period of time before interest begins to accumulate.
Subsidized stafford loans:
Based on your financial need as demonstrated by the FAFSA information you provide, a discounted loan will be given to you (FAFSA). If you qualify for a subsidized Stafford loan, you won't be charged interest while you're enrolled in school at least half-time, during the grace period that lasts up to six months after you stop being enrolled, or during some specified deferral periods.
During certain times, the Federal government pays (subsidies) the interest.
A loan that is unsubsidized is not given out based on need. But the FAFSA is still required for applications. You will be charged interest on unsubsidized loans from the time they are disbursed until they are repaid in full. While in school and throughout any grace or deferment period, you may opt to postpone paying interest. The interest will be capitalized, nevertheless, if you permit it to accrue (accumulate) throughout these times. This implies that interest will be added to the loan's principle, and subsequent interest will be calculated using the larger amount.
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A freshman does. The reason is that the money can be used by the freshmen for a considerably longer period of time before interest begins to accumulate. Unsubsidized loans will accrue interest from the time they are disbursed until they are fully repaid.
You will be offered a subsidized loan based on the FAFSA information you submit and your financial need (FAFSA). If you are approved for a Stafford loan with subsidized payments, there will be no interest assessed while you are enrolled at least half-time in school, during the grace period that lasts up to six months after you stop enrolling, or during any designated deferral periods. The interest is paid (subsidized) by the federal government on occasion.
Unsubsidized loans are not given out according to need. The FAFSA is however still necessary for applicants. Unsubsidized loans will accrue interest from the time they are disbursed until they are fully repaid. You may choose to defer paying interest while enrolled in classes and during any grace or deferral period. However, if you allow the interest to accrue (accumulate) throughout these intervals, it will be capitalized. This suggests that the principle of the loan will be increased by the amount of interest, and that interest will then be computed on the greater amount.
To learn more about subsidized Stafford loans refer to:
brainly.com/question/15333065
#SPJ4
