[Code of Federal Regulations] [Title 34, Volume 3] [Revised as of July 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 34CFR685.100] [Page 813-814] TITLE 34--EDUCATION CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION PART 685_WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM--Table of Contents Subpart A_Purpose and Scope Sec. 685.100 The William D. Ford Federal Direct Loan Program. Subpart A_Purpose and Scope Sec. 685.100 The William D. Ford Federal Direct Loan Program. 685.101 Participation in the Direct Loan Program. 685.102 Definitions. 685.103 Applicability of subparts. Subpart B_Borrower Provisions 685.200 Borrower eligibility. 685.201 Obtaining a loan. 685.202 Charges for which Direct Loan Program borrowers are responsible. 685.203 Loan limits. 685.204 Deferment. 685.205 Forbearance. 685.206 Borrower responsibilities and defenses. 685.207 Obligation to repay. 685.208 Repayment plans. 685.209 Income contingent repayment plan. 685.210 Choice of repayment plan. 685.211 Miscellaneous repayment provisions. 685.212 Discharge of a loan obligation. 685.213 Total and permanent disability discharge. 685.214 Closed school discharge. 685.215 Discharge for false certification of student eligibility or unauthorized payment. 685.216 Unpaid refund discharge. 685.217 Teacher loan forgiveness program. 685.218-685.219 [Reserved] 685.220 Consolidation. Subpart C_Requirements, Standards, and Payments for Direct Loan Program Schools 685.300 Agreements between an eligible school and the Secretary for participation in the Direct Loan Program. 685.301 Origination of a loan by a Direct Loan Program school. 685.302 [Reserved] 685.303 Processing loan proceeds. 685.304 Counseling borrowers. 685.305 Determining the date of a student's withdrawal. 685.306 Payment of a refund or return of title IV, HEA program funds to the Secretary. 685.307 Withdrawal procedure for schools participating in the Direct Loan Program. 685.308 Remedial actions. 685.309 Administrative and fiscal control and fund accounting requirements for schools participating in the Direct Loan Program. [[Page 814]] Subpart D_School Participation and Loan Origination in the Direct Loan Program 685.400 School participation requirements. 685.401 [Reserved] 685.402 Criteria for schools to originate loans. Authority: 20 U.S.C. 1087a et seq., unless otherwise noted. Source: 59 FR 61690, Dec. 1, 1994, unless otherwise noted. (a) Under the William D. Ford Federal Direct Loan (Direct Loan) Program (formerly known as the Federal Direct Student Loan Program), the Secretary makes loans to enable a student or parent to pay the costs of the student's attendance at a postsecondary school. This part governs the Federal Direct Stafford/Ford Loan Program, the Federal Direct Unsubsidized Stafford/Ford Loan Program, the Federal Direct PLUS Program, and the Federal Direct Consolidation Loan Program. The Secretary makes loans under the following program components: (1) Federal Direct Stafford/Ford Loan Program (formerly known as the Federal Direct Stafford Loan Program), which provides loans to undergraduate, graduate, and professional students. The Secretary subsidizes the interest while the borrower is in an in-school, grace, or deferment period. (2) Federal Direct Unsubsidized Stafford/Ford Loan Program (formerly known as the Federal Direct Unsubsidized Stafford Loan Program), which provides loans to undergraduate, graduate and professional students. The borrower is responsible for the interest that accrues during any period. (3) Federal Direct PLUS Program, which provides loans to parents of dependent students. The borrower is responsible for the interest that accrues during any period. (4) Federal Direct Consolidation Loan Program, which provides loans to borrowers to consolidate certain Federal educational loans. (b) The Secretary makes a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a Direct PLUS Loan only to a student or a parent of a student enrolled in a school that has been selected by the Secretary to participate in the Direct Loan Program. (c) The Secretary makes a Direct Consolidation Loan only to-- (1) A borrower with a loan made under the Direct Loan Program; or (2) A borrower with a loan made under the Federal Family Education Loan Program who is not able to receive-- (i) A Federal Consolidation Loan; or (ii) A Federal Consolidation Loan with income-sensitive repayment terms that are satisfactory to the borrower. (Authority: 20 U.S.C. 1087a et seq.)