<p>*Does Federal Direct Subsidized Loan charge any interest? * Yes, but due to a technicality, the interest for the Direct Subsidized loan may be less (7.9%) for PLUS loans. For Stafford it is the same.</p>
<p>"Federal Direct Subsidized Loan" means that the college you attend is lending you the money. The other type of loan is called FFEL, and for those the lender is a private corporation, like Citibank. </p>
<p>Is PLUS loan parents loans? Yes.</p>