Department of Education: William D. Ford Federal Direct Loan Program
GAO-13-726R, Jul 1, 2013
GAO reviewed the Department of Education's (Education) new rule on the William D. Ford Federal Direct Loan Program. GAO found that (1) the rule amends the regulations governing the William D. Ford Federal Direct Loan Program to reflect changes made to the program by the Moving Ahead for Progress in the 21st Century Act (MAP-21). Specifically, this interim final rule implements section 100301 of MAP-21, which extends the 3.4 percent interest rate on Direct Subsidized Loans from July 1, 2012, to July 1, 2013, and section 100302 of MAP-21, which ensures that a borrower may not receive Direct Subsidized Loans for more than 150 percent of the published length of the educational program in which the borrower is enrolled. Under the changes made by MAP-21, if the borrower exceeds this Direct Subsidized Loan limit, the borrower also becomes responsible for the accruing interest on the Direct Subsidized Loans; and (2) Education complied with applicable requirements in promulgating the rule.