A dependent student's parent refuses to provide financial support, so the student is not eligible for a dependency override, but may receive

A dependent student's parent refuses to provide financial support, so the student is not eligible for a dependency override, but may receive

• A. Direct Subsidized Loans only
• B. Direct Unsubsidized Loans only
• C. both Unsubsidized and Subsidized Direct Loans
• D. Direct PLUS Loans

Answer: (B)

Subsidized loans are awarded based on financial need, while unsubsidized loans are not need-based. If a student remains dependent (no dependency override) and the situation described doesn’t establish enough need, the loan that can be awarded without needing demonstrated need is the Direct Unsubsidized Loan. Direct PLUS Loans are not available to the student themselves (they’re for parents of dependent undergraduates or for graduate students). So, in this scenario, the student may receive Direct Unsubsidized Loans only.

Subsidized loans are awarded based on financial need, while unsubsidized loans are not need-based. If a student remains dependent (no dependency override) and the situation described doesn’t establish enough need, the loan that can be awarded without needing demonstrated need is the Direct Unsubsidized Loan. Direct PLUS Loans are not available to the student themselves (they’re for parents of dependent undergraduates or for graduate students). So, in this scenario, the student may receive Direct Unsubsidized Loans only.