Page:United States Statutes at Large Volume 100 Part 2.djvu/265

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1367

"(g) DEFINITIONS.—For the purpose of subsections (a) and (d) of this section— "(1) the term 'period of instruction' shall, at the discretion of the lender, be any academic year, semester, trimester, quarter, or other academic period; or shall be the period for which the loan is made as determined by the institution of higher education; and "(2) the term 'period of enrollment' shall be the period for which the loan is made as determined by the institution of higher education and shall coincide with academic terms such as academic year, semester, trimester, quarter, or other academic period as defined by such institution.

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"FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS "SEC. 428. (a) FEDERAL INTEREST SUBSIDIES.— "(1) TYPES OF LOANS THAT QUALIFY.—Each student who

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20 USC 1078. has

received a loan for study at an eligible institution— "(A) which is insured by the Secretary under this part; or "(B) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (5), and which— "(i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than 60 days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or "(ii) in the case of a loan insured after June 30, 1967, was made by an eligible lender and is insured under a program covered by an agreement made pursuant to subsection (b), shall be entitled to have paid on his or her behalf and for his or her account to the holder of the loan a portion of the interest on such loan under circumstances described in paragraph (2). "(2) ADDITIONAL REQUIREMENTS TO RECEIVE SUBSIDY.—(A) Each student qualifying for a portion of an interest payment under paragraph (1) shall— "(i) have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which the student is in attendance, which— "(I) sets forth such student's estimated cost of attendance (as determined under section 472); and "(II) sets forth such student's estimated financial assistance; and "(ii) meet the requirements of subparagraph (B). "(B) For the purpose of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) if the eligible institution has provided the lender with a statement evidencing a determination of need for a loan (as determined under part F of this title) and the amount of such need, subject to the provisions of subparagraph (D). "(C) For the purpose of paragraph (1) and this paragraph—

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