A Federal Direct Loan is a loan provided to students by the United States Department of Education. There are four types of Direct Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

There are limits to how much aid can be borrowed through Federal Direct Loans. During your first year of undergraduate study, a total of $5,500 (including $2,000 in Direct Unsubsidized Loans) can be borrowed. During your sophomore year, of undergraduate study, a total of $6,500 (including $2,000 in Direct Unsubsidized Loans) can be borrowed. During your junior and senior years, a total of $7,500 (including $2,000 in Direct Unsubsidized Loans) can be borrowed each year. Federal Direct Loans are also available for students in graduate or professional programs; the yearly borrowing for loans in these circumstances is much higher.