Page:United States Statutes at Large Volume 101 Part 1.djvu/375

 PUBLIC LAW 100-50—JUNE 3, 1987

101 STAT. 345

shall be treated as eligible to obtain a loan from another lender under section 428A(d)(3) or 428B(d)(3), as applicable, for the purposes of discharging the loan from the original lender, and a borrower exercising this option shall not be subject to an additional insurance fee under section 428A(d)(3)(C) or 428B(d)(3)(C). (s) CoNSOUDATiON LoANS.—Section 428C of the Act is amended— (1) in subsection (a)(l)(C), by striking out "(C) and (E)" and inserting in lieu thereof "(C), (E), and (J)"; (2) in subsection (a)(3)(A)— (A) in division (i), by adding "and" at the end thereof; (B) in division (ii), by striking out the semicolon and "and" at the end thereof and inserting in lieu thereof a 'r' period; and (C) by striking out division (iii); (3) in subsection (a)(3)(B)— (A) by striking out "loans received under this title" in
 * >• the first sentence and inserting "eligible student loans

^ received"; (B) by striking out "under this part" and inserting "under this title"; (C) by striking out "and 428(b)(l)(B)" in the second sen81 tence and inserting ", 428(b)(l)(B), 428A(b)(2), and 464(a)(2)"; 1' and (D) by adding at the end thereof the following new sentence: "Nothing in this subparagraph shall be interpreted to authorize the Secretary to require lenders, holders, or guarantors of consolidation loans to receive, to maintain, or to make reports with respect to pre-existing records relating to any eligible student loan (as defined under section 428C(a)(4)) discharged by a borrower in receiving a consolidation loan."; (4) in subsection (a)(4)(A), by inserting before the semicolon at the end thereof a comma and the following: "except for loans made to parent borrowers under section 428B, including loans made to parent borrowers under section 428B as in effect prior to the enactment of the Higher Education Amendments of 1986"; (5) in subsection (b)(l)(C)— (A) by striking out "subsection (a)(2)" in clause (i) and inserting * 'subsection (a)(3)"; and (B) by striking out "all loans received by the eligible si borrower under this title" in clause (ii) and inserting "all eligible student loans received by the eligible borrower"; (6) in subsection (c)(2)(A)(v), by striking out "more" and inserting "equal to or greater"; and (7) in subsection (c)(5), by inserting before the period at the end thereof the following: ", but a fee may be payable by the lender to the guaranty agency to cover the costs of increased or extended liability with respect to such loan". (t) STATE GARNISHMENT PROGRAM.—Section 428E of the Act is amended— (1) in subsection (a)(1) by inserting before the semicolon a comma and the following: except that any State which has a garnishment law in effect on the date of the enactment of the Higher Education Amendments of 1986 which provides for the deduction of an amount not to exceed 15 percent of disposable

20 USC 1078-1; 1078-2. 20 USC 1078-3. ^^^« •' "

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20 USC 1001 note.

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20 USC 1078-5.

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