Which of the following statements about federal student loans is TRUE? A) The interest rate on your loan will be fixed over time. B) The interest rates on federal loans and private loans are similar. C) You can only get federal student loans if you demonstrate financial need. D) You do not accumulate interest on federal loans.
Business · Middle School · Tue Nov 03 2020
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The true statement about federal student loans is:
A) The interest rate on your loan will be fixed over time.
Federal student loans typically have fixed interest rates, meaning that the interest rate remains constant over the life of the loan. This provides borrowers with predictability in their repayment plans. It's important to note that the specific interest rates can vary depending on the type of federal loan and when the loan was originated. Additionally, starting in the 2013-2014 academic year, new federal student loans for undergraduate borrowers have been issued with fixed interest rates.