The U.S. Department of Education currently offers direct subsidized loans, direct unsubsidized loans, direct PLUS loans, and direct consolidation loans. Subsidized loans are solely for eligible undergraduate students who demonstrate financial need to help cover the costs of a higher education, while unsubsidized loans are available for eligible undergraduate, graduate, and professional students, though eligibility isn’t based on financial need. PLUS loans are made to graduate or professional students as well as parents of dependent undergraduate students for education expenses not covered by other financial aid. A consolidation loan allows you to combine all of your eligible federal student loans into one loan with a sole loan servicer.