Page:United States Statutes at Large Volume 100 Part 1.djvu/375

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 339

hide exempted from the requirements of this part by the Administrator.

TITLE XVI—HIGHER EDUCATION PROGRAMS SEC. 16001. SHORT TITLE; REFERENCE.

(a) SHORT TITLE.—This title may be cited as the "Student Financial Assistance Amendments of 1985". (b) REFERENCE.—References in this title to "the Act" are to the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

Student Financial Assistance Amendments of 1985. 20 USC 1001 note.

Subtitle A—Savings in Student Loan Program Operations SEC. 16011. RECOVERY OF OUTSTANDING ADVANCES TO GUARANTY AGENCIES. Section 422 of the Act is amended by adding at the end thereof the following new subsection: "(d)(1) Notwithstanding any other provision of this section, advances made by the Secretary under this section shall be repaid in accordance with this paragraph and shall be deposited in the fund established by section 431. The Secretary shall, in accordance with the requirements of paragraph (2), recover (and so deposit) an amount equal to $75,000,000 during fiscal year 1988. "(2) In determining the amount of advances which shall be repaid by a State or nonprofit private institution or organization under paragraph (1), the Secretary— "(A) shall consider the solvency and maturity, as determined by the Comptroller General, of the reserve and insurance funds of the State or nonprofit private institution or organization assisted by such advances; "(B) shall not seek repayment of such advances from any State described in subsection (c)(5)(B) during any year of its eligibility under such subsection; and "(C) shall not seek repayment of such advances from any State if such repayment encumbers the reserve fund requirement mandated by the statutes of such State.". SEC. 16012. DISBURSEMENT OF STUDENT LOANS TO INSTITUTIONS REQUIRED. (a) FISL LOANS REQUIREMENT.—Section 427(a)(2) of the Act is

amended— (1) by striking out clause (ii) of subparagraph (B) and by redesignating clauses (iii) and (iv) of subparagraph (B) as clauses (ii) and (iii), respectively; (2) by striking out "or the fifteen-year period" in the matter following clause (viii) of subparagraph (C); and (3) by amending subparagraph (I) to read as follows: "(I) the funds borrowed by a student are disbursed to the institution by check or other means that is payable to and requires the endorsement or other certification by such student, except nothing in this subparagraph shall be interpreted to allow the Secretary to require checks to be made

20 USC 1072. State and local governments. 20 USC 1081.

20 USC 1077.

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