Page:United States Statutes at Large Volume 100 Part 2.djvu/284

 100 STAT. 1386

PUBLIC LAW 99-498—OCT. 17, 1986

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"(C) may be subject to an additional insurance fee but shall not be subject to the administrative cost charge permitted by paragraph (2) of this subsection; and "(D) shall be applied to discharge the borrower from any remaining obligation to the original lender with respect to the original loan.

"(4)

CERTIFICATION IN UEU OF PROMISSORY NOTE PRESEN-

TATION.—Each new lender may accept certification from the original lender of the borrower's original loan in lieu of presentation of the original promissory note. "(5) NOTIFICATION TO BORROWERS OF AVAILABILITY OF REFINANCING OPTIONS.—Each holder of a loan made under this

section or under section 428B as in effect prior to the date of enactment of this Act shall, not later than January 1, 1987, in the case of loans made before the date of enactment of this Act, notify the borrower of such loan— "(A) of the refinancing options for which the borrower is eligible under this subsection; "(B) of those options which will be made available by the holder; and "(C) that, with respect to any option that the holder will not make available, the holder will, to the extent practicable, refer the borrower to an eligible lender offering such option. "PLUS LOANS

20 USC 1078-2.

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428B. (a) AUTHORITY TO BORROW.—Parents of a dependent student shall be eligible to borrow funds under this section in amounts specified in subsection (b), and unless otherwise specified in subsections (c) and (d), such loans -shall have the same terms, conditions, and benefits as all other loans made under this part. Whenever necessary to carry out the provisions of this section, the terms 'student' and 'borrower' as used in this part shall include a parent borrower under this section, but such a parent borrower shall not be eligible for any deferment pursuant to section 427(a)(2)(C) or 428(b)(l)(M) except for the deferments allowed (with respect to the student) under clauses (i), (viii), and (ix) of such sections. "SEC.

"(b) LIMITATIONS ON AMOUNTS OF LOANS.— "(1) ANNUAL LIMIT.—Subject to paragraphs

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(2) and (3), the maximum amount parents may borrow for one student in any academic year or its equivalent (as defined by regulation of the Secretary) is $4,000. "(2) AGGREGATE LIMIT.—The aggregate insured principal amount for insured loans made to parents on account of a student shall not exceed $20,000. "(3) LIMITATION BASED ON NEED.—Any loan under this section may be counted as part of the expected family contribution in the determination of need under this title, but no loan may be made to any parent under this section which would cause the combined loans of the parent and the student for any academic year to exceed the student's estimated cost of attendance minus such student's estimated financial assistance as certified by the eligible institution under section 428(a)(2)(A) of this part. The annual insurable limit on account of any student shall not be deemed to be exceeded by a line of credit under which actual

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