Federal Direct Loans are a type of financial aid provided by the U.S. government to help students pay for their education. These loans are available to undergraduate and graduate students, and they come with fixed interest rates. Borrowers can choose between subsidized loans, where the government pays the interest while the student is in school, and unsubsidized loans, where the borrower is responsible for all interest. Repayment of Federal Direct Loans typically begins six months after graduation or when a student drops below half-time enrollment. Borrowers can take advantage of various repayment plans, including income-driven options, which adjust monthly payments based on income and family size.