9568 Federal Register / Vol. 60, No. 33 / Friday, February 17, 1995 / Notices

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. On December 29,

1994, the Department of Education

published a notice in the Federal

Register (59 FR 67579) inviting schools

to apply to participate in the third year

of the Direct Loan Program. That notice

included the Secretary’s application and

selection procedures. However, the

version of the application form included

with the notice did not contain an

expiration date issued by the Office of

Management and Budget. The form

contained in the appendix to this notice

contains this date. Any school wishing

to apply to participate in the Direct

Loan Program after the date of

publication of this notice must use the

application form included as an

appendix to this notice. If a school has

already submitted an application to the

Secretary using the form published on

December 29, 1994, the school does not

have to reapply. Along with the revised

application form, the Secretary is

republishing the application and

selection process for the convenience of

schools.

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

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.

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 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 685.400, and

§ 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, D.C. 20202–

5400. Telephone: (202) 708–9406.

Individuals who use a

telecommunications device for the deaf
Federal Register / Vol. 60, No. 33 / Friday, February 17, 1995 / Notices 9569

(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, William D. Ford Federal

Direct Loan Program)

Dated: February 14, 1995.

David A Longanecker,

Assistant Secretary for Postsecondary

Education.

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[FR Doc. 95–4059 Filed 2–16–95; 8:45 am]

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