Page:United States Statutes at Large Volume 101 Part 1.djvu/373

 PUBLIC LAW 100-50—JUNE 3, 1987

101 STAT. 343

(2) in subparagraph (B), by striking out clause (ii) and inserting the following: "(ii) the amount borrowed and the cumulative amount borrowed.". (i) SUPPLEMENTAL PRECLAIMS ASSISTANCE.—Section 428(c)(6)(C)(iv) of the Act is amended by adding at the end thereof the following: "In 20 USC 1078. the case of accounts brought into repayment status as a result of performing supplemental preclaims assistance, the cost of such assistance is a permissible charge to the borrower (for the cost of collection) for which the borrower shall be liable.". (j)

SECRETARY'S

EQUITABLE

SHARE;

GARNISHMENT.—Section

428(c)(6)(D) of the Act is amended by inserting "and enforces" after "enacts". (k) REINSURANCE FEES.—Section 428(c)(9) of the Act is amended— (1) by inserting "covered" before "loans" each place it appears in clauses (i) and (ii) of subparagraph (A); and (2) by adding at the end thereof the following new subparagraph: "(D) For purposes of subparagraph (A), the term 'covered ' ' loans' means loans made under this part to which the insurance applies, but does not include loans made under section 428A(d), 428B(d), or 428C.". (1) ESCROW OF DISBURSEMENTS.—(1) The first sentence of section 428(i)(l) of the Act is amended by striking out "multiple". (2) The third sentence of section 428(i)(l) of the Act is amended by striking out "45" and inserting in lieu thereof "21". (m) LENDERS-OF-LAST-RESORT.—Section 428(j) is amended by adding at the end thereof the following new sentence: "The guaranty agency shall consider the request of any eligible lender, as defined under section 435(d)(1)(A) of this Act, to serve as the lenderof-last-resort pursuant to this subsection.".

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20 USC 1078-1. 20 USC 1078-2, 1078-3.

20 USC 1085.

(n) USE OF SUPPLEMENTAL LOAN PROGRAM BY UNDERGRADUATES.—

Section 428A(a) of the Act is amended by adding at the end thereof 20 USC 1078-1. the following: "In addition, undergraduate dependent students shall be eligible to borrow funds under this section if the financial aid administrator determines, after review of the financial information submitted by the student and considering the debt burden of the student, that extenuating circumstances will likely preclude the student's parents from borrowing under section 428B for purposes of the expected family contribution and that the student's family is otherwise unable to provide such expected family contribution.". (o) LOAN DEFERMENTS FOR SUPPLEMENTAL AND PLUS LOANS.—(1) Sections 428A(c)(2) and 428B(c)(2) of the Act is amended by striking 20 USC 1078-2. out "and interest" after "principal" the first time it appears. (2) Section 428B of the Act is amended— (A) in subsection (a), by striking out ", but such a parent borrower" and all that follows through "clauses (i), (viii), and (ix) of such sections"; (B) in subsection (c)(1), by striking out "subject to deferral pursuant to sections 427(a)(2)(C)(i), (viii), and (ix) and 20 USC 1077. 428(b)(l)(M)(i), (viii), and (ix)" and inserting in lieu thereof "subject to deferral (A) during any period during which the parent meets the conditions required for a deferral under clause (i), (viii), or (ix) of section 427(a)(2)(C) or 428(b)(l)(M); and (B) during any period during which the borrower has a dependent student for whom a loan obligation was incurred under this

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