A Direct Loan is a type of loan offered by the US Department of Education. Although there are five types of Direct Loans - Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Parent PLUS Loans, Direct Graduate PLUS Loan, and Direct Consolidation Loans, most often when people refer to "Direct Loans," they are referring to Direct Subsidized Loans and Direct Unsubsidized Loans. The amount you can borrow annually as well cumulatively will depend on whether the borrower is an undergraduate, graduate, or professional student or a parent. Undergraduates have annually loan limits from $5,500 to $12,500 per year, depending on what year the student is in school, their dependency status, and the cost of attendance in relation to the other forms of aid. Graduate or professional students can borrow up to $20,500 each year in Direct Unsubsidized Loans and the cost of attendance minus other forms of aid in Direct Graduate PLUS Loans.Parents of dependent undergraduates can receive a Direct Parent PLUS Loan for the cost of attendance minus all other financial aid.