 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
           Part C--William D. Ford Federal Direct Loan Program
 
Sec. 1087a. Program authority


(a) In general

    There are hereby made available, in accordance with the provisions 
of this part, such sums as may be necessary to make loans to all 
eligible students (and the eligible parents of such students) in 
attendance at participating institutions of higher education selected by 
the Secretary, to enable such students to pursue their courses of study 
at such institutions during the period beginning July 1, 1994. Such 
loans shall be made by participating institutions, or consortia thereof, 
that have agreements with the Secretary to originate loans, or by 
alternative originators designated by the Secretary to make loans for 
students in attendance at participating institutions (and their 
parents).

(b) Designation

                             (1) Program

        The program established under this part shall be referred to as 
    the ``William D. Ford Federal Direct Loan Program''.

                          (2) Direct loans

        Notwithstanding any other provision of this part, loans made to 
    borrowers under this part that, except as otherwise specified in 
    this part, have the same terms, conditions, and benefits as loans 
    made to borrowers under section 1078 of this title, shall be known 
    as ``Federal Direct Stafford/Ford Loans''.

(Pub. L. 89-329, title IV, Sec. 451, as added Pub. L. 99-498, title IV, 
Sec. 404, Oct. 17, 1986, 100 Stat. 1437; amended Pub. L. 102-325, title 
IV, Sec. 451, July 23, 1992, 106 Stat. 569; Pub. L. 103-66, title IV, 
Sec. 4021, Aug. 10, 1993, 107 Stat. 341; Pub. L. 103-382, title III, 
Sec. 358A, Oct. 20, 1994, 108 Stat. 3968.)


                            Prior Provisions

    A prior section 1087a, Pub. L. 89-329, title IV, Sec. 451, as added 
Pub. L. 90-575, title I, Sec. 141, Oct. 16, 1968, 82 Stat. 1031; amended 
Pub. L. 92-318, title I, Sec. 136(a), (b)(1), June 23, 1972, 86 Stat. 
272, authorized appropriations for cooperative education programs from 
the fiscal year ending June 30, 1969, through the fiscal year ending 
prior to July 1, 1975, prior to repeal by Pub. L. 94-482, title I, 
Sec. 129(a), Oct. 12, 1976, 90 Stat. 2144, eff. 30 days after Oct. 12, 
1976.


                               Amendments

    1994--Pub. L. 103-382 designated existing provisions as subsec. (a), 
added heading, and added subsec. (b).
    1993--Pub. L. 103-66 amended section generally, substituting 
provisions relating to program authority for former provisions relating 
to program and payment authority.
    1992--Pub. L. 102-325 amended section generally, substituting 
provisions relating to program and payment authority for Federal direct 
loan demonstration program for former provisions relating to statement 
of purpose of income contingent direct loan demonstration project.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-325 effective Oct. 1, 1992, see section 2 
of Pub. L. 102-325, set out as a note under section 1001 of this title.


              Income Contingent Loan Distribution of Funds

    Section 452 of Pub. L. 102-325 provided that:
    ``(a) In General.--After September 30, 1992, and not later than 
March 31, 1992, the capital balance of the student loan fund established 
under part D of title IV of the Higher Education Act of 1965 [20 U.S.C. 
1087a et seq.] (as such Act was in effect on the date of enactment of 
this Act [July 23, 1992]) shall be distributed by allowing institutions 
to transfer any remaining funds, including future collections and all 
other funds at the institution's discretion, to such institution's part 
E [20 U.S.C. 1087aa et seq.] account, part C [42 U.S.C. 2751 et seq.] 
fund, or subpart 3 of part A [20 U.S.C. 1070b et seq.] fund under the 
terms and conditions of the appropriate program.
    ``(b) Conversion of Existing Loans.--Institutions may, after July 1, 
1992, convert all outstanding loans made under part D of title IV of the 
Higher Education Act of 1965 [20 U.S.C. 1087a et seq.] (as such Act was 
in effect on such date) to part E [20 U.S.C. 1087aa et seq.] loans, 
provided that such institution--
        ``(1) notify the borrower of such conversion;
        ``(2) obtain a signed part E promissory note from the borrower 
    for the remaining amount outstanding; and
        ``(3) provide the borrower in writing with a description of all 
    terms and conditions of the new loan.''
