Which answer best describes an unsubsidized federal loan?
athe federal government will only cover the interest accumulated on the loan if you graduate and earn a degree.
bthe federal government will cover the interest accumulated on the loan while you're in school.
cyou are responsible for paying all the interest that accumulates on your loan.
dyou are only responsible for the cost of the loan.

Correct Option: You are responsible for paying all the interest that accumulates on your loan.

Federal government generally provide subsidized loan with lower interest rate, no interest payment during study period (interest holiday) and various other feature. But if the federal loan is unsubsidized, we have to pay the entire amount of interest accumulated on the loan. In this case, no discount, rebate or subsidy is allowed on the loan amount.

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