There are four types of direct loans available.
The first one is the Direct Subsidized Loan. This type of loan is made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
The second loan is the Direct Unsubsidized Loan. This is a loan made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
The third type of loan is the Direct PLUS Loan. This is a loan made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
Finally, there are Direct Consolidation Loans. These types of loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.