[Federal Register Volume 59, Number 249 (Thursday, December 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32031]
[[Page Unknown]]
[Federal Register: December 29, 1994]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
William D. Ford Federal Direct Loan Program; Solicitation of
Applications
AGENCY: Department of Education.
ACTION: Notice of solicitation of applications.
-----------------------------------------------------------------------
SUMMARY: The Secretary of Education invites applications from schools
to participate in the William D. Ford Federal Direct Loan (Direct Loan)
Program for the 1996-1997 academic year, which is the academic year
beginning July 1, 1996. 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: The deadline date for the transmittal of
applications is November 1, 1995.
FOR FURTHER INFORMATION CONTACT: Byron K. Belser, U.S. Department of
Education, 600 Independence Avenue, S.W., Room 3022, Regional Office
Building 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: 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 directed the Secretary to phase in the Direct Loan Program.
The HEA provided that the student loan volume made under the Direct
Loan Program should represent five percent of the total student loan
volume in academic year 1994-1995, the first year of implementation,
and 40 percent for the second year of the program (academic year 1995-
1996). For academic year 1996-1997, the HEA directs the Secretary to
exercise his discretion in the selection of schools so that the loans
made under the Direct Loan Program will represent 50 percent of the new
student loan volume for that academic year unless 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 academic years were published
as final regulations on December 1, 1994 (59 FR 61664). See 34 CFR
Sec. 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 is directed to increase the loan volume under the
Direct Loan Program to 50 percent of the total student loan volume for
the 1996-1997 academic year, unless 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 and
meet the eligibility requirements for participation.
The Secretary will accept applications from schools to participate
in the Direct Loan Program through November 1, 1995. The Secretary will
select schools to participate in the Direct Loan Program periodically
throughout 1995 and will notify the institutions that are selected
individually. The Secretary will publish a final list of the schools
selected to participate in the Direct Loan Program after he has
evaluated all of the applications received on or before November 1,
1995. The Secretary encourages potential participants to submit
applications early. This will provide a school with 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.
A school that has been selected to participate in the Direct Loan
Program for the 1995-1996 academic year, and an eligible school that
applied to participate in the program for that year but was not
selected, need not submit an application for the 1996-1997 academic
year. If an eligible school that applied but was not selected for
participation in the second year does not wish to be considered for
participation in the third year, it should notify the Secretary.
Solicitation of Applications for Participation in the Direct Loan
Program--1996-1997 Academic Year
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: November 1, 1995.
For Information contact: Byron K. Belser, U.S. Department of
Education, 600 Independence Avenue, SW., Room 3022, Regional Office
Building 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 in the 1996-1997
academic year, a school must complete the application and submit it to
the address below as soon as possible, but no later than November 1,
1995.
A school may 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.
(Catalog of Federal Domestic Assistance Number 84.268, Federal
Direct Student Loan Program)
Dated: December 23, 1994.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
BILLING CODE 4000-01-P
TN29DE94.004
TN29DE94.005
[FR Doc. 94-32031 Filed 12-28-94; 8:45 am]
BILLING CODE 4000-01-C
