Summary of Federal Laws

 

Financial Aid Programs                                              

Compliance Partners

Director of Financial Aid

 

Wm. D. Ford Federal Direct Loan Program

 

20 U.S.C. §§ 1087a;  34 C.F.R. § 685.100 et seq, Provides low-interest loans to students.  The U.S. Department of Education is the sole lender and borrowers repay the Department.  This is the umbrella name for four programs:  the Federal Direct Stafford/Ford Loan; the Federal Direct Unsubsidized Stafford/Ford Loan; the Federal PLUS Loan; and the Federal Direct Consolidation Loan. 

 

72 Fed. Reg. 61959 (Nov. 1, 2007) Final Rule to Strengthen and improve the administration of the Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program. These final regulations, effective July 1, 2008, address preferred lender lists, prohibited inducements, and permissible activities. For a complete summary of the ways in which the regulations differ from the proposed rule read Final Regulations on Loans Include Some Surprises from NASFAA.

 

Of interest:

"In a major shift that undercut shares in top student lender Sallie Mae, Obama's budget called for moving most of the nation's roughly $90 billion in student lending into the direct-loan program run by the U.S. Education Department." Read full article: Obama Swings axe at Private Student Lenders: Reuters News Service Feb. 26, 2009

 

Resources:

FSA Direct Loan page

Student Financial Aid Handbook

links updated 3/4/09 rab
updated 3/5/09 to add compliance partner
Compliance box links updated 6/3/09 rab