(a) In general
There are hereby made available, in accordance with the provisions of this part, such sums as may be necessary (1) 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; and (2) for purchasing loans under section 1087i–1 of this title. Loans made under this part 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).
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".
A prior section 1087a, Pub. L. 89–329, title IV, §451, as added Pub. L. 90–575, title I, §141, Oct. 16, 1968, 82 Stat. 1031; amended Pub. L. 92–318, title I, §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, §129(a), Oct. 12, 1976, 90 Stat. 2144, eff. 30 days after Oct. 12, 1976.
2008—Subsec. (a). Pub. L. 110–227, in first sentence, inserted "(1)" before "to make loans" and "; and (2) for purchasing loans under section 1087i–1 of this title" before period at end and, in second sentence, substituted "Loans made under this part shall" for "Such loans shall".
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
Income Contingent Loan Distribution of Funds
Pub. L. 102–325, title IV, §452, July 23, 1992, 106 Stat. 575, provided that:
"(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."