The William D. Ford Federal Direct Loan Program manages low-interest loans to cover the costs of post-secondary education. The program includes four types of loans, notes the United States Department of Education.
The types of loans available through the program are funded by the U.S. Department of Education. The four available types of loans are Direct, Direct unsubsidized, Direct PLUS and Direct consolidation. Direct loans and Direct unsubsidized loans that students get to pay for higher education. Direct PLUS loans are taken out by parents to help pay for a child's education. Finally, Direct consolidation loans are used after the student graduates to combine multiple student loans into one loan with a single monthly payment, notes Wells Fargo.