Education loans sponsored by the U.S. Government include the William D. Ford Federal Direct Loan and the Federal Perkins Loan, both designated for undergraduate and graduate students with financial need, according to the U.S. Department of Education. Students can also apply for private loans from banks, credit organizations or private lenders.
The U.S. government hosts four types of direct loans under the William D. Ford Direct Loan Program, according to the U.S. Department of Education. A direct subsidized loan is available to undergraduate students who show proof of financial need to attend a higher education institution. Direct subsidized loans do not accumulate interest while the student is attending college.
A direct unsubsidized loan is available to professional, graduate or undergraduate students attending college, explains the U.S. Department of Education. Students applying for an unsubsidized loan do not have to demonstrate financial need to qualify for this loan. Unsubsidized loans accrue interest while the student is attending school. Direct consolidation loans allow students to combine all federal loans into one loan supported by a single loan servicer, and Direct PLUS loans are available for parents or professional students who need help paying educational expenses that other means of financial aid do not cover.