Page:United States Statutes at Large Volume 100 Part 2.djvu/337

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1439

Secretary shall prescribe by regulation, be made on such terms and conditions as the institution may determine. "(2) The aggregate amount of all loans made by institutions of higher education from loan funds established pursuant to agreements under this part to any student may not exceed $17,500. "(3) The total amount of loans made by institutions of higher education from loan funds established pursuant to such agreement for any academic year may not exceed— "(A) $2,500 in the case of a student who is in the first or second academic year of a program of education leading to a bachelor's degree; "(B) $3,500 in the case of a student who is in the third such year; and "(C) $4,500 in the case of a student who is in the fourth and fifth such year. "(4) The interest rate on all such loans shall be the rate equal to the rate obtained for each calendar year (A) by computing the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period preceding such year, and (B) by adding 3 percent to the resulting percent. "(5) Loans made from loan funds established pursuant to such agreements shall contain such agreements for deferments, interest accrual during deferments, and loan cancellation, as are consistent with the provisions of part E of this title, subject to such modifications as the Secretary may, by regulation, prescribe. "(b) AUTHORITY OF SECRETARY TO PRESCRIBE OTHER TERMS.—The

Secretary may by regulation prescribe such other terms for loans made from loan funds established pursuant to such agreements as the Secretary determines will contribute to carrying out the provisions of this part. "FEASIBILITY STUDY

"SEC. 455. (a) STUDY.—The Secretary shall, based upon the projects assisted under this part, conduct a study of the feasibility of extending the pilot project to a direct student loan fund program of general applicability beginning after September 30, 1990. "(b) REPORT.—The Secretary shall prepare and submit to the Congress a report on the feasibility study begun pursuant to subsection (a) not later than October 1, 1991, and October 1, 1995, together with such recommendations as the Secretary deems appropriate.".

20 USC 1087e.

SEC. 405. AMENDMENT TO PART E OF THE ACT.

(a) AMENDMENT.—Part E of title IV of the Act is amended to read as follows: "PART E—DIRECT LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION APPROPRIATIONS AUTHORIZED

461. (a) PROGRAM AUTHORITY.—The Secretary shall carry 20 USC 1087aa. out a program of stimulating and assisting in the establishment and maintenance of funds at institutions of higher education for the making of low-interest loans to students in need thereof to pursue their courses of study in such institutions. Loans made under this part shall be known as 'Perkins Loans'. "SEC.

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