Federal loans are financial aid options provided by the government to help individuals pay for education, housing, or other expenses. These loans typically have lower interest rates and more flexible repayment terms compared to private loans. They are often available to students, parents, and homeowners, making them a popular choice for those in need of financial assistance. One common type of federal loan is the Direct Subsidized Loan, which is available to eligible undergraduate students. The government pays the interest on this loan while the student is in school, making it more affordable. Other types include Direct Unsubsidized Loans and Federal Housing Administration (FHA) loans, each serving different purposes and borrower needs.