Types of Student Loans -- Direct Loans

Direct Loans are federal student loans that are made directly to students enrolled in educational programs.

The U.S. Department of Education offers a Direct Loan program which uses the FAFSA -- The Free Application For Federal Student Aid -- as its application.

These direct loans can be subsidized by the government wherein the government pays the interest payments while the student is in college. Both subsidized and unsubsidized student loans are guaranteed by the U.S. Government.