30438 Federal Register / Vol. 61, No. 116 / Friday, June 14, 1994 / 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. 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 § 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.
Federal Register / Vol. 61, No. 116 / Friday, June 14, 1994 / Notices 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.

BILLING CODE 4000–01–M
30440 Federal Register / Vol. 61, No. 116 / Friday, June 14, 1994 / Notices
Federal Register / Vol. 61, No. 116 / Friday, June 14, 1994 / Notices 30441

[FR Doc. 96–15126 Filed 6–13–96; 8:45 am]

BILLING CODE 4000–01–M