Page:United States Statutes at Large Volume 100 Part 2.djvu/266

 100 STAT. 1368 lo (b

PUBLIC LAW 99-498—OCT. 17, 1986 "

"(i) a student's estimated financial assistance means, for the period for which the loan is sought, the amount of 1" If assistance such student will receive under subpart 1 of part A (as determined in accordance with section 484(b)), subpart 2 of part A, and parts C and E of this title, and any amount '•Jly-i paid the student under chapters 32, 34, and 35 of title 38, 38 USC 1601 et United States Code, plus other scholarship, grant, or loan seq., 1651 et seq., assistance; and 1700 et seq. "(jj) ^.j^g determination of need and of the amount of a loan by an eligible institution under subparagraph (B) with respect to a student shall be calculated by subtracting from the estimated cost of attendance at the eligible institution the total of the expected family contribution with respect to such student plus any estimated financial assistance reasonably available to such student. --' ' "(D) An eligible institution may not, in carrying out the provisions of subparagraphs (A) and (B) of this paragraph, provide a statement which permits the student to receive any loan under this part in excess of the maximum amount applicable to such loan. "(E) For the purpose of subparagraphs (B) and (C) of this paragraph, any loan obtained by a student under section 428A or a parent under section 428B of this Act or under any Statesponsored or private loan program for an academic year for which the determination is made may be used to offset the expected family contribution of the student for that year. "(F) Except as provided in subparagraph (D), an eligible institution may not, in carrying out the provisions of subparagraphs (A) and (B) of this paragraph, refuse to provide to any eligible lender which has an agreement under subsection (b) of this section with any guaranty agency, a statement which permits a student to receive any loan under this part. "(3) AMOUNT OF INTEREST SUBSIDY.—(A)(i) Subject to section 438(c), the portion of the interest on a loan which a student is entitled to have paid, on behalf of and for the account of the student, to the holder of the loan pursuant to paragraph (1) of this subsection shall be equal to the total amount of the interest on the unpaid principal amount of the loan— "(I) which accrues prior to the beginning of the repay190 ment period of the loan, or "(II) which accrues during a period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in subsection (b)(l)(M) of this section or in section 427(a)(2)(C). "(ii) Such portion of the interest on a loan shall not exceed, for any period, the amount of the interest on that loan which is payable by the student after taking into consideration the amount of any interest on that loan which the student is entitled to have paid on his or her behalf for that period under any State or private loan insurance program. "(iii) The holder of a loan with respect to which payments are required to be made under this section shall be deemed to have a contractual right, as against the United States, to receive from the Secretary the portion of interest which has been so 1.. determined without administrative delay after the receipt by the Secretary of an accurate and complete request for payment li? pursuant to paragraph (4). ,
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