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Subpart APurpose and Scope

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					                                                                   § 685.100                                                             34 CFR Ch. VI (7–1–10 Edition)
                                                                   685.309 Administrative and fiscal control                   (4) Federal Direct Consolidation Loan
                                                                       and fund accounting requirements for                  Program, which provides loans to bor-
                                                                       schools participating in the Direct Loan              rowers to consolidate certain Federal
                                                                       Program.
                                                                                                                             educational loans.
                                                                    Subpart D—School Participation and Loan                    (b) The Secretary makes a Direct
                                                                      Origination in the Direct Loan Program                 Subsidized Loan, a Direct Unsubsidized
                                                                                                                             Loan, or a Direct PLUS Loan only to a
                                                                   685.400 School participation requirements.                student or a parent of a student en-
                                                                   685.401 [Reserved]                                        rolled in a school that has been se-
                                                                   685.402 Criteria for schools to originate                 lected by the Secretary to participate
                                                                       loans.                                                in the Direct Loan Program.
                                                                    AUTHORITY: 20 U.S.C 1070g, 1087a, et seq.,                 (c) The Secretary makes a Direct
                                                                   unless otherwise noted.                                   Consolidation Loan only to—
                                                                     SOURCE: 59 FR 61690, Dec. 1, 1994, unless
                                                                                                                               (1) A borrower with a loan made
                                                                   otherwise noted.                                          under the Direct Loan Program; or
                                                                                                                               (2) A borrower with a loan made
                                                                                                                             under the Federal Family Education
                                                                     Subpart A—Purpose and Scope                             Loan Program who—
                                                                   § 685.100 The William D. Ford Federal                       (i) Is not able to obtain a Federal
                                                                       Direct Loan Program.                                  Consolidation Loan;
                                                                                                                               (ii) Is not able to obtain a Federal
                                                                     (a) Under the William D. Ford Fed-                      Consolidation Loan with income-sen-
                                                                   eral Direct Loan (Direct Loan) Pro-                       sitive repayment terms that are satis-
                                                                   gram (formerly known as the Federal                       factory to the borrower; or
                                                                   Direct Student Loan Program), the                           (iii) Has a Federal Consolidation
                                                                   Secretary makes loans to enable a stu-                    Loan that has been submitted by the
                                                                   dent or parent to pay the costs of the                    lender to the guaranty agency for de-
                                                                   student’s attendance at a postsec-                        fault aversion, and wishes to consoli-
                                                                   ondary school. This part governs the                      date the Federal Consolidation Loan
                                                                   Federal Direct Stafford/Ford Loan Pro-                    into the Direct Loan Program for the
                                                                   gram, the Federal Direct Unsubsidized                     purpose of obtaining an income contin-
                                                                   Stafford/Ford Loan Program, the Fed-                      gent repayment plan.
                                                                   eral Direct PLUS Program, and the
                                                                   Federal Direct Consolidation Loan Pro-                    (Authority: 20 U.S.C. 1087a et seq.)
                                                                   gram. The Secretary makes loans                           [59 FR 61690, Dec. 1, 1994, as amended at 71
                                                                   under the following program compo-                        FR 45709, Aug. 9, 2006]
                                                                   nents:
                                                                     (1) Federal Direct Stafford/Ford Loan                   § 685.101 Participation in the Direct
                                                                   Program (formerly known as the Fed-                           Loan Program.
                                                                   eral Direct Stafford Loan Program),                         (a)(1) Colleges, universities, graduate
                                                                   which provides loans to undergraduate,                    and professional schools, vocational
                                                                   graduate, and professional students.                      schools, and proprietary schools se-
                                                                   The Secretary subsidizes the interest                     lected by the Secretary may partici-
                                                                   while the borrower is in an in-school,                    pate in the Direct Loan Program. Par-
                                                                   grace, or deferment period.                               ticipation in the Direct Loan Program
                                                                     (2) Federal Direct Unsubsidized Staf-                   enables an eligible student or parent to
                                                                   ford/Ford Loan Program (formerly                          obtain a loan to pay for the student’s
                                                                   known as the Federal Direct Unsub-                        cost of attendance at the school.
                                                                   sidized Stafford Loan Program), which                       (2) The Secretary may permit a
                                                                   provides loans to undergraduate, grad-                    school to participate in both the Fed-
                                                                   uate and professional students. The                       eral Family Education Loan (FFEL)
                                                                   borrower is responsible for the interest                  Program, as defined in 34 CFR part 600,
                                                                   that accrues during any period.                           and the Direct Loan Program. A school
                                                                     (3) Federal Direct PLUS Program,                        permitted to participate in both the
                                                                   which provides loans to parents of de-                    FFEL Program and the Direct Loan
                                                                   pendent students and to graduate or                       Program may certify loan applications
                                                                   professional students. The borrower is                    under the FFEL Program according to
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                                                                   responsible for the interest that ac-                     the terms of its agreement with the
                                                                   crues during any period.                                  Secretary.

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                                                                   Ofc. of Postsecondary Educ., Education                                                          § 685.102

                                                                     (b) An eligible undergraduate student                   TEACH Grant
                                                                   who is enrolled at a school partici-                      Two-thirds of an academic year
                                                                   pating in the Direct Loan Program                         Undergraduate student
                                                                                                                             U.S. citizen or national
                                                                   may borrow under the Federal Direct
                                                                   Stafford/Ford Loan and Federal Direct                       (2) The following definitions are set
                                                                   Unsubsidized Stafford/Ford Loan Pro-                      forth in the regulations for Institu-
                                                                   grams. An eligible graduate or profes-                    tional Eligibility under the Higher
                                                                   sional student enrolled at a school par-                  Education Act of 1965, as amended, 34
                                                                   ticipating in the Direct Loan Program                     CFR part 600:
                                                                   may borrow under the Federal Direct                       Accredited
                                                                   Stafford/Ford Loan, Federal Direct Un-                    Clock hour
                                                                   subsidized Stafford/Ford Loan, and                        Educational program
                                                                   Federal Direct PLUS Programs. An eli-                     Eligible institution
                                                                   gible parent of an eligible dependent                     Federal Family Education Loan (FFEL) Pro-
                                                                   student enrolled at a school partici-                       gram
                                                                                                                             Institution of higher education
                                                                   pating in the Direct Loan Program                         Nationally recognized accrediting agency or
                                                                   may borrow under the Federal Direct                         association
                                                                   PLUS Program.                                             Preaccredited
                                                                   (Authority: 20 U.S.C. 1087a et seq.)                      Program of study by correspondence
                                                                                                                             Secretary
                                                                   [59 FR 61690, Dec. 1, 1994, as amended at 71
                                                                   FR 45709, Aug. 9, 2006]                                     (3) The following definitions are set
                                                                                                                             forth in the regulations for the Federal
                                                                   § 685.102 Definitions.                                    Family Education Loan (FFEL) Pro-
                                                                      (a)(1) The definitions of the following                gram, 34 CFR part 682:
                                                                   terms used in this part are set forth in                  Act
                                                                   subpart A of the Student Assistance                       Endorser
                                                                   General Provisions, 34 CFR part 668:                      Federal Insured Student Loan (FISL) Pro-
                                                                                                                              gram
                                                                   Academic Competitiveness Grant (ACG) Pro-                 Federal Stafford Loan Program
                                                                     gram                                                    Foreign school
                                                                   Academic year                                             Guaranty agency
                                                                   Campus-based programs                                     Holder
                                                                   Dependent student                                         Legal guardian
                                                                   Disburse                                                  Lender
                                                                   Eligible program                                          Totally and permanently disabled
                                                                   Eligible student
                                                                   Enrolled                                                    (b) The following definitions also
                                                                   Expected family contribution (EFC)                        apply to this part:
                                                                   Federal Consolidation Loan Program                          Alternative originator: An entity under
                                                                   Federal Direct Student Loan Program (Di-                  contract with the Secretary that origi-
                                                                     rect Loan Program)
                                                                                                                             nates Direct Loans to students and
                                                                   Federal Pell Grant Program
                                                                   Federal Perkins Loan Program                              parents of students who attend a Di-
                                                                   Federal PLUS Program                                      rect Loan Program school that does
                                                                   Federal Supplemental Educational Oppor-                   not originate loans.
                                                                     tunity Grant Program                                      Consortium: For purposes of this part,
                                                                   Federal Work-Study Program                                a consortium is a group of two or more
                                                                   Full-time student                                         schools that interacts with the Sec-
                                                                   Graduate or professional student                          retary in the same manner as other
                                                                   Half-time student
                                                                   Independent student
                                                                                                                             schools, except that the electronic
                                                                   Leveraging Educational Assistance Partner-                communication between the Secretary
                                                                     ship Program                                            and the schools is channeled through a
                                                                   National Science and Mathematics Access to                single point. Each school in a consor-
                                                                     Retain Talent Grant (National SMART                     tium shall sign a Direct Loan Program
                                                                     Grant) Program                                          participation agreement with the Sec-
                                                                   One-third of an academic year                             retary and be responsible for the infor-
                                                                   Parent
                                                                                                                             mation it supplies through the consor-
                                                                   Payment period
                                                                   State                                                     tium.
                                                                                                                               Default: The failure of a borrower and
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                                                                   Teacher Education Assistance for College
                                                                     and Higher Education (TEACH) Grant Pro-                 endorser, if any, to make an install-
                                                                     gram                                                    ment payment when due, or to meet

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