Types of loans:
Direct Subsidized loan: A direct subsidized loan is made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. With the subsidized loan the lender charges you interest but the governments pays the interest as long as the student remains in school and for 6 months afterwards. Students can only borrow up to a maximum amount in subsidized loans every year and the government will pay the interest until its time for the students to begin making the loan payments after 6 months he/she finishes school. 3.86% interest.
Direct Unsubsidized loan: A direct unsubsidized loan is made to eligible undergraduate, graduate students but the students doesn't have to demonstrate financial need to be eligible. Unsubsidized loans earn interest while the student attends school. 3.86% for undergraduate students and 5.41% for graduate and professional students.
Federal Perkins Loan Program: This is a school based-program for undergraduates and graduate students with exceptional financial need. (School is the lender)