Page:United States Statutes at Large Volume 100 Part 2.djvu/336

 100 STAT. 1438

PUBLIC LAW 99-498—OCT. 17, 1986

fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years. "(c) ALLOTMENT; MAXIMUM NUMBER OF GRANTS.—(1) The Secretary shall allot the amounts appropriated in each fiscal year pursuant to subsection (b) among institutions of higher education which desire to participate in the pilot project authorized by this part and which have agreements with the Secretary under section 453. "(2) The Secretary may not enter into agreements with more than 10 institutions of higher education under this part. '

20 USC 1087c.

0; V

"AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION

"SEC. 453. An agreement with an institution of higher education under this part shall— "(1) provide for the establishment and maintenance of a student loan fund for the purpose of this part; "(2) provide for the deposit in such fund of Federal capital contributions from funds appropriated pursuant to section 452(b); "(3) provide for the deposit in such fund of a capital contribution by such institution equal to not less than one-ninth of the amount of the Federal capital contribution described in paragraph (2); "(4) provide for the deposit in such fund of collections of principal and interest on student loans made from deposited funds and any other earnings of such funds; "(5) provide that such student loan fund shall be used only for— "(A) loans to students, in accordance with the provisions of this part; "(B) administrative expenses; and "(C) costs of litigation, and other collection costs agreed to by the Secretary in connection with the collection of a loan from the fund (and interest thereon) or a charge assessed pursuant to regulations; "(6) provide that repayment of the loans made from such student loan funds will be made in accordance with a repayment schedule, which will be adjusted annually on the basis of the total amount borrowed by the student and the income of the student borrower, together with such adjustments in the schedule as the Secretary and the institution determine will best carry out the purpose of this part, except that for the first 2 years of the repayment period the schedule may require a fixed payment plan; "(7) provide for the distribution of assets from student loan funds under this part in accordance with criteria prescribed by the Secretary, based upon the provisions of section 466; and "(8) provide for such other assurances and limitations as the Secretary may reasonably require. i *

20 USC I087d.

"TERMS OF LOAN UNDER THE PILOT PROGRAM

"SEC. 454. (a) CONDITIONS, LIMITATIONS, AND REQUIREMENTS.—(1)

Loans from any student loan fund established pursuant to an agreement under section 453, to any student by any institution shall, subject to such conditions, limitations, and requirements as the

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