The U.S. Department of Education's federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. There are three types of Direct Loans available:
Direct Subsidized Loans
are loans made to eligible students who demonstrate financial need to help cover higher education costs. www.studentaid.ed .gov.
Direct Unsubsidized Loans
are loans made to eligible students, but eligibility is not based on financial need. www.studentaid.ed .gov.
Direct PLUS Loans
are loans made to parents of dependent students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify. www.studentaid.ed .gov.