20 U.S.C. § 1087a: Program authority

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”. 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”. The maximum dollar amount of financial assistance provided under this part to a student shall not exceed the cost of attendance for such student. 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 [ 20 U.S.C. 1087–51 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. notify the borrower of such conversion; obtain a signed part E promissory note from the borrower for the remaining amount outstanding; and provide the borrower in writing with a description of all terms and conditions of the new loan.”