Direct Loan for Dummies

Hey there! So, a "Direct Loan" is basically when you borrow money from the government to pay for college. It's like getting a big wad of cash to cover your tuition, books, and other school stuff. But, here's the thing - you have to pay back the money, plus interest, after you finish school. It's kind of like getting an advance on your allowance, but you have to pay it back later, with a little extra added on top.

There are a couple of different types of Direct Loans, too. One is called a subsidized loan, which means the government pays the interest while you're in school. The other is an unsubsidized loan, where you're responsible for the interest from the get-go. So, it's kind of like the government saying, "Hey, we'll help you out with paying for school, but you'll have to give us back what we lent you, plus a little bonus for letting you borrow it."

I hope that helps you understand what a "Direct Loan" is! If you have any more questions, feel free to ask.