Page:United States Statutes at Large Volume 100 Part 2.djvu/268

 100 STAT. 1370 State and local

governments.

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PUBLIC LAW 99-498—OCT. 17, 1986 "(1) REQUIREMENTS OF INSURANCE PROGRAM.—Any State OF

any nonprofit private institution or organization may enter ir:to an agreement with the Secretary for the purpose of entitling students who receive loans which are insured under a student loan insurance program of that State, institution, or organization to have made on their behalf the payments provided for in subsection (a) if the Secretary determines that the student loan insurance program— "(A) authorizes the insurance in any academic year or its X'- ' • equivalent (as determined under regulations of the Secretary) for any student who is carrying at an eligible ri. 5 institution at least one-half the normal full-time academic r;;. workload (as determined by the institution) in any amount up to a maximum of— "(i) $2,625, in the case of a student who has not successfully completed the first or second year of a program of undergraduate education; "(ii) $4,000, in the case of a student who has successo;o.r.;;v fuUy completed such first and second year but who has not successfully completed the remainder of a program of undergraduate education; and "(iii) $7,500, in the case of a graduate or professional ,,..r student (as defined in regulations of the Secretary); .';;! except in cases where the Secretary determines, pursuant to regulations, that a higher amount is warranted in order to carry out the purpose of this part with respect to students engaged in specialized training requiring exceptionally high costs of education, but the annual insurable limit per student shall not be deemed to be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any years in excess of the , annual limit; ' *' "(B) provides that the aggregate insured unpaid principal amount for all such insured loans made to any student shall be any amount up to a maximum of— "(i) $17,250, in the case of any student who has not successfully completed a program of undergraduate education; and '"' '"^ "(ii) $54,750, in the case of any graduate or professional student (as defined by regulations of the Sec• retary and including any loans which are insured by the Secretary under this part, or by a guaranty agency, made to such student before the student became a graduate or professional student); except that the Secretary may increase the limit applicable to students who are pursuing programs which the Secretary determines are exceptionally expensive; "(C) authorizes the insurance of loans to any individual student for at least 6 academic years of study or their equivalent (as determined under regulations of the Secretary); "(D) provides that (i) the student borrower shall be entitled to accelerate without penalty the whole or any part of an insured loan, (ii) except as provided in subparagraph (M) of this paragraph, the repayment period of any insured loan may not exceed 10 years, and (iii) the note or other written evidence of any loan, may contain such reasonable provi-

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