Page:United States Statutes at Large Volume 100 Part 2.djvu/269

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1371

sions relating to repayment in the event of default by the borrower as may be authorized by regulations of the Secretary in effect at the time such note or written evidence was executed; "(E) subject to subparagraphs (D) and (L) of this paragraph and except as provided by subparagraph (M) of this paragraph, provides that repayment of loans shall be in installments over a period of not less than 5 years (unless the student, during the 6 months preceding the start of the repayment period, specifically requests that repayment be made over a shorter period) nor more than 10 years beginning 6 months after the month in which the student ceases . „^ t^ to carry at least one-half the normal full-time academic workload as determined by the institution; "(F) authorizes interest on the unpaid balance of the loan at a yearly rate not in excess (exclusive of any premium for insurance which may be passed on to the borrower) of the rate required by section 427A; "(G) insures not less than 100 percent of the unpaid principal of loans insured under the program; "(H) provides for collection of a single insurance premium equal to not more than 3 percent of the principal amount of the loan, by deduction proportionately from each installment payment of the proceeds of the loan to the borrower, and insures that the proceeds of the premium will not be used for incentive payments to lenders; "(I) provides that the benefits of the loan insurance pro:f^ gram will not be denied any student who is eligible for interest benefits under subsection (a)(1) and (2); "(J) provides that a student may obtain insurance under the program for a loan for any year of study at an eligible institution; "(K) in the case of a State program, provides that such State and local State program is administered by a single State agency, or governments. by one or more nonprofit private institutions or organizations under supervision of a single State agency; "(L) provides that the total of the payments by borrower— "(i) during any year of any repayment period with respect to the aggregate amount of all loans to that borrower which are insured under this part shall not, unless the borrower and the lender otherwise agree, be less than $600 or the balance of all such loans (together with interest thereon), whichever amount is less, except that, in the case of a husband and wife, both of whom have such loans outstanding, the total of the combined payments for such a couple during any year snail not be less than $600 or the balance of all such loans, whichever is less; and "(ii) for a monthly or other similar payment period with respect to the aggregate of all loans held by the lender may, when the amount of a monthly or other ^' similar payment is not a multiple of $5, be rounded to the next highest whole dollar amount that is a multiple of $5;

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