[Federal Register: June 14, 1996 (Volume 61, Number 116)]
[Notices]
[Page 30437-30441]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
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Part V
Department of Education
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William D. Ford Federal Direct Loan Program; Solicitation of
Applications; Notice
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DEPARTMENT OF EDUCATION
William D. Ford Federal Direct Loan Program; Solicitation of
Applications
AGENCY: Department of Education.
ACTION: Notice of solicitation of applications.
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SUMMARY: The Secretary of Education invites applications from schools
to participate in the William D. Ford Federal Direct Loan (Direct Loan)
Program. This notice relates to the Federal Direct Stafford/Ford Loan
Program, the Federal Direct Unsubsidized Stafford/Ford Loan Program,
and the Federal Direct PLUS Program, collectively referred to as the
Direct Loan Program.
APPLICATION DEADLINE: Applications may be submitted at any time.
FOR FURTHER INFORMATION CONTACT:
Kenneth Smith, U.S. Department of Education, 600 Independence Avenue
SW., Room 3042, ROB-3, Washington, DC 20202-5400. Telephone: (202) 708-
9406. Individuals who use a telecommunications device for the deaf
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through
Friday.
SUPPLEMENTARY INFORMATION: The Omnibus Budget Reconciliation Act of
1993, enacted on August 10, 1993, established the Direct Loan Program
under Title IV, Part D, of the Higher Education Act of 1965, as amended
(HEA). See Subtitle A of the Omnibus Budget Reconciliation Act of 1993
(Pub. L. 103-66). Under the Direct Loan Program, loan capital is
provided directly to student and parent borrowers by the Federal
Government rather than through private lenders.
Background
The HEA directs the Secretary to phase in the Direct Loan Program.
The HEA provides that the student loan volume made under the Direct
Loan Program should represent 5 percent of the total student loan
volume in the first year of the program (academic year 1994-1995), 40
percent for the second year of the program (academic year 1995-1996),
50 percent for the third and fourth years of the program (academic
years 1996-1997 and 1997-1998), and 60 percent for the fifth year of
the program (academic year 1998-1999).
The HEA allows the loan volume to exceed the percentage goals for
academic years 1996-1997, 1997-1998, and 1998-1999 if the Secretary
determines that a higher percentage is warranted by the number of
institutions of higher education that desire to participate in the
Direct Loan Program that meet the eligibility requirements for
participation. See section 453(a)(2) and (3) of the HEA.
Schools participating in the Direct Loan Program transmit and
receive loan origination information electronically to and from a
Direct Loan Servicer and receive Federal funds electronically. The
Secretary provides PC software and mainframe specifications, as well as
technical assistance, to schools to facilitate their implementation of
the Direct Loan program.
The standards for institutional participation in the Direct Loan
Program for the 1995-1996 and subsequent years were published as final
regulations on December 1, 1994 (59 FR 61664). See 34 CFR 685.400 and
Sec. 685.402. These final regulations were developed after the
Secretary received input from the financial aid community and other
members of the public through a negotiated rulemaking process and
numerous other opportunities for public comment.
Application and Selection Process
The Secretary will accept applications from schools to participate
in the Direct Loan Program at any time. The Secretary will select
schools to participate in the Direct Loan Program periodically and will
notify the institutions individually when they are selected.
The Secretary encourages a potential participant to submit an
application well in advance of the date on which the school will begin
participation in the Direct Loan Program. This will allow a school more
time to plan for its transition into the Direct Loan Program and to
begin the transition process. Further, a school will be able to take
advantage of training opportunities and prepare any campus materials it
may choose to use in the Direct Loan Program.
The Secretary will publish an interim list of the schools selected
to participate in the Direct Loan Program for each academic year on or
before December 16 of the preceding calendar year. A school that
already has been selected to participate in the Direct Loan Program and
an eligible school that previously applied to participate in the
program but was not selected, need not submit an application again.
However, if an eligible school that previously applied but did not
participate (either because it was not selected or because it chose not
to participate) does not wish to be considered for participation, it
should notify the Secretary.
Solicitation of Applications for Participation in the Direct Loan
Program
Purpose of Program
To provide loans to enable students and parents of students to pay
the students' costs of attendance at a postsecondary school. Under the
Direct Loan Program, loan capital is provided directly to student and
parent borrowers by the Federal Government rather than through private
lenders.
Eligible Applicants
Colleges, universities, graduate and professional schools, and
vocational and technical schools that meet the definition of an
eligible institution under section 435(a) of the HEA.
Deadline for Transmittal of Applications
Applications may be submitted at any time.
For Information Contact
Kenneth Smith, U.S. Department of Education, 600 Independence
Avenue SW., Room 3042, ROB-3, Washington, DC 20202-5400. Telephone:
(202) 708-9406. Individuals who use a telecommunications device for the
deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-
800-877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through
Friday.
Application Form and Instructions
The Secretary has developed an application form for a school to use
to apply to participate in the Direct Loan Program. A copy of the
application form is included as an Appendix to this notice. On this
form, the signature of the President or Chief Executive Officer (CEO)
of the institution is required. In addition, the school must designate
an official at the school to receive Direct Loan Materials.
If a school is applying as part of a consortium, it must indicate
the exact names of all schools in the consortium and the name of the
destination point (school or outside entity) for the consortium.
In order to be considered for participation, a school must complete
the application and mail or fax the application to: U.S. Department of
Education, Office of Postsecondary Education, ROB-3, Federal Direct
Loan Task Force, Room 4025, 600 Independence Avenue SW., Washington, DC
20202-5162, FAX: (202) 260-6718, (202) 260-6705, or (202) 260-6706.
[[Page 30439]]
(Catalog of Federal Domestic Assistance Number 84.268, William D.
Ford, Federal Direct Loan Program)
Dated: June 7, 1996.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
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[FR Doc. 96-15126 Filed 6-13-96; 8:45 am]
BILLING CODE 4000-01-M