Answer:
I. grace period during which payments are not due
II. based on student need
Explanation:
Stafford loan is a student loan that is given to students of accredited colleges to cover tuition and it is guaranteed buy the government. These loan can be subsidized or unsubsidized. The subsidized loans are the ones in which the interest is paid by the government when student in enrolled in the program and during a grace period and it is given to students with financial needs. In the unsubsidized loan, the student is responsible for all the interests generated.
Statements 1 and 2 are correct. The characteristics of subsidized Stafford loans are based on student need and the grace period during which payment is not due.
Further Explanation:
Subsidized Stafford loan is a type of loan provides to the student. The government is guaranteed for this loan. The government will pay the interest amount until the student will not complete his studies. In the case of unsubsidized Stafford loans, the interest amount is paid by the student itself. The principal loan amount is increased with the interest amount.
Justification for the correct and incorrect answer:
A.
The grace period during which payments are not due: This statement is correct.
This is the characteristics of the subsidized Stafford loan, as the grace period is time until the student will not pay the loan amount.
B.
Based on student need: This statement is correct.
The loan is provided to the students according to the financial need of the student. This are the characteristics of the subsidized Stafford loan.
C.
The student is responsible for all interest for the lifetime of the loan: This statement is incorrect.
This is not correct, in this case, the interest is paid by the government. The student pays the interest in case of an unsubsidized Stafford loan.
Learn more:
1. Learn more about lifetime cost
https://brainly.com/question/1757741
2. Learn more about collateral security
https://brainly.com/question/9913858
3. Learn more about loan type
https://brainly.com/question/1242264
Answer details:
Grade: Middle School
Subject: Business
Chapter: Subsidized Stafford loan
Keywords:
student, government, guarantee, interest, Subsidized Stafford loan, characteristics, grace period during which payment, responsible, based on student need.
