The subject of student loans can be a confusing one to many of us. Even after we have earned our college degree, we may still have difficulties navigating the various types of loans and loan consolidation programs available. More often than not, though, students will be dealing with some type of Direct Student loan.

Under the general title of Direct Student loans there are a few different specific types of loans. As a side note, "Direct" in general just refers to the fact that these loans come directly from the US government. Other types of loans, FFEL loans for example, come from banks or credit institutions who are participating in the government supported program.

One of the types of Direct Loans is the Direct PLUS (Parent Loans for Undergraduate Students) type of loans. These loans are made to parents of dependent children. PLUS loans aren't based on financial need and all interest on these loans is to be paid by the parents. Direct Stafford Loans are another type of Direct loan. These loans are really beneficial for those who are experiencing financial difficulties. A Stafford loan accrues interest at a lower rate as long as the student is attending school at least half time or during the grace period.

There Are Also Direct Consolidation Loans

Another really beneficial type of Direct loan is the Direct Consolidation loan. These loans, which are also given through the US government, allow students to consolidate the various outstanding loans they may have so that they can reduce their overall monthly loan payment. The consolidation process serves to smooth out the interest rate discrepancies between the various loans, and this generally results in a greatly reduced monthly payment.