Page:United States Statutes at Large Volume 100 Part 2.djvu/349

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1451

a rate not to exceed $1 in excess of the rate prescribed by section 6 of the Fair Labor Standards Act of 1938. 29 USC 206. The period during which repa5mient may be deferred by reason of clause (ii), (iii), (iv), (v), or (vii) shall not exceed 3 years. The period ,; during which repayment may be deferred by reason of clause (vi) shall not exceed 2 years. The period during which repayment may be deferred by reason of clause (viii) shall not exceed 6 months. The period during which the repa3mient may be deferred by reason of clause (ix) shall not exceed 12 months. "(B) Any period during which repayment is deferred under subparagraph (A) shall not be included in computing the 10-year maximum period provided for in subparagraph (A) of paragraph (1). "(C) No repayment of principal of, or interest on, any loan for any period of study, service, or disability described in subparagraph (A) or any combination thereof shall begin until 6 months after the completion of such period of study, service, disability, or combination thereof. "(3)(A) The Secretary is authorized, when good cause is shown, to extend, in accordance with regulations, the 10-year maximum repayment period provided for in subparagraph (A) of paragraph (1) with respect to individual loans. "(B) Pursuant to uniform criteria established by the Secretary, the Disadvantaged repayment period for any student borrower who during the repay- persons. ment period is a low-income individual may be extended for a period not to exceed 10 years and the repa5mient schedule may be adjusted to reflect the income of that individual. "(4) The institution may elect— "(A) to add the amount of any charge imposed under paragraph (1)(H) to the principal amount of the loan as of the first day after the day on which the installment was due and to notify the borrower of the assessment of the charge; or "(B) to make the amount of the charge payable to the institution not later than the due date of the next installment. "(d) AVAILABILITY OF LOAN FUND TO A L L ELIGIBLE STUDENTS.—An

agreement under this part for payment of Federal capital contributions shall include provisions designed to make loans from the student loan fund established pursuant to such agreement reasonably available (to the extent of the available funds in such fund) to all eligible students in such institutions in need thereof. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE "SEC. 465. (a) CANCELLATION OF PERCENTAGE OF DEBT BASED ON YEARS OF QUALIFYING SERVICE.—(1) The percent specified in para-

20 USC I087ee.

graph (3) of this subsection of the total amount of any loan made after June 30, 1972, from a student loan fund assisted under this part shall be canceled for each complete year of service after such date by the borrower under circumstances described in paragraph (2). "(2) Loans shall be canceled under paragraph (1) for service— "(A) as a full-time teacher for service in an academic year in a public or other nonprofit private elementary or secondary school which is in the school district of a local educational agency which is eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, 20 USC 2701. and which for the purpose of this paragraph and for that year has been determined by the Secretary (pursuant to regulations

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