Question about financial aid letter (very confused student!)?

The fasfa shows you all the grants that you will be eligible for. Once you have you financial aid appt. will your school, they will add up the costs of all your credits, subtract your grant/grants amount then if you have a balance you are eligible to apply for the subsidized loan, if you still have a balance after that you the go to the unsubsidized loan. You are usually eligible to receive the direct loans as long as you do not have any outstanding student loans