SESK: Stuff Everyone Should Know · sesk.info/teen-college-subsidized
On a subsidized federal student loan, who pays the interest while you're in school?
The government.
- You do
- Your school
- The government ✔
Why: Subsidized loans are your cheapest option because the government covers the interest while you are in school.
Huh, didn't know that: For most borrowers, federal loans offer lower interest rates than private loans.
Subsidized: the government is covering my tab at the interest cafe.
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References
Answer: The government. Subsidized loans are your cheapest option because the government covers the interest while you are in school.
- CFPB: Choose a student loan www.consumerfinance.gov/paying-for-college/choose-a-student-loan
They are your cheapest option, since the government pays the interest while you’re in school.
Checked 2026-10-10.
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