On a subsidized federal student loan, who pays the interest while you're in school?

The government.

Start playing free

  1. You do
  2. Your school
  3. 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.

The dad joke
Subsidized: the government is covering my tab at the interest cafe.
Like this card?
Play the game

References

Answer: The government. Subsidized loans are your cheapest option because the government covers the interest while you are in school.

  1. 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.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game