[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: 34CFR685.400]



[Page 860-861]

 

                           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 D_School Participation and Loan Origination in the Direct Loan 

                                 Program

 

Sec. 685.400  School participation requirements.





    (a)(1) In order to qualify for initial participation in the Direct 

Loan Program, a school must meet the eligibility requirements in section 

435(a) of the Act, including the requirement that it have a cohort 

default rate of less than 25 percent for at least one of the three most 

recent fiscal years for which data are available unless the school is 

exempt from this requirement under section 435(a)(2)(C) of the Act.

    (2) In order to continue to participate in the Direct Loan Program, 

a school must continue to meet the requirements of paragraph (a)(1) of 

this section for years for which cohort default rate data represent the 

years prior to the school's participation in the Direct Loan Program.

    (b) In order to qualify for initial participation, the school must 

not be subject to an emergency action or a proposed or final limitation, 

suspension, or termination action under sections 428(b)(1)(T), 432(h), 

or 487(c) of the Act.

    (c) If schools apply as a consortium, each school in the consortium 

must meet the requirements in paragraphs (a) and (b) of this section.

    (d) The Secretary selects schools to participate in the Direct Loan 

Program from among those that apply to participate and meet the 

requirements in



[[Page 861]]



paragraphs (a)(1), (b), and (c) of this section.



(Authority: 20 U.S.C. 1087a et seq.)



[59 FR 61690, Dec. 1, 1994, as amended at 64 FR 46255, Aug. 24, 1999]