Direct Loans uses the federal government as the lender.
Federal student loans offer many benefits compared to other options you may consider when paying for college:
The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card!
You don’t need a credit check or a cosigner to get most federal student loans.
You don’t have to begin repaying your federal student loans until after you leave college or drop below half-time.
If you demonstrate financial need, the government pays the interest on some loan types while you are in school and during some periods after school.
Federal student loans offer flexible repayment plans and options to postpone your loan payments if you’re having trouble making payments.
If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.
https://studentaid.gov/understand-aid/types/loans