Page:United States Statutes at Large Volume 103 Part 3.djvu/44

 103 STAT. 2112 PUBLIC LAW 101-239—DEC. 19, 1989 "(V)(i) provides that, upon written request, a lender shall grant a borrower forbearance, renewable at 12-month inter- vals for a period equal to the length of time remaining in the borrower's medical or dental internship or residency program, on such terms as are otherwise consistent with the regulations of the Secretary and agreed upon in writing by the parties to the loan, with the approval of the insurer, it the borrower— . ,,. "(I) is serving in a medical or dental internship or residency program, the successful completion of which is required to begin professional practice or service, or is serving in a medical or dental internship or resi- dency program leading to a degree or certificate ST.- ,*. awarded by an institution of higher education, a hos- pital, or a health care facility that offers postgraduate training; and "(II) has exhausted his or her eligibility for a deferment under section 427(a)(2)(C)(vii) or subpara- graph (M)(vii) of this paragraph; and "(ii) provides that no administrative or other fee may be charged in connection with the granting of a forbearance under clause (i), and that no adverse information regarding a borrower may be reported to a credit bureau organization - solely because of the granting of a forbearance under clause V (i).";and (B) by amending subsection (c)(3) to read as follows: "(3) FORBEARANCE. —A guaranty agreement under this subsection— "(A) shall contain provisions providing for forbearance in accordance with subsection (b)(l)(V) for the benefit of the student borrower serving in a medical or dental internship or residency program; and "(B) may, to the extent provided in regulations of the ' Secretary, contain provisions that permit such forbearance for the benefit of the student borrower as may be agreed upon by the parties to an insured loan and approved by the '' - insurer. Such regulations shall not preclude guaranty agencies from permitting the parties to such a loan from entering into a forbearance agreement solely because the loan is in default.". 20 USC 1078 (2) EFFECTIVE DATE.—The amendments made by this subsec- note. tion shall apply with respect to loans made before, on, or after the date of enactment of this Act. SEC. 2003. CHANGES IN THE SUPPLEMENTAL LOANS FOR STUDENTS ^ PROGRAM. (a) RESTRICTIONS ON SLS PROGRAM AT INSTITUTIONS WITH HIGH COHORT DEFAULT RATES.— (1) RESTRICTION. —Section 428A(a) of the Higher Education Act of 1965 (20 U.S.C. 1078-l(a)) is amended— (A) by striking "(a) AUTHORFTY TO BORROW. —Graduate and professional students"; and inserting the following: "(a) AUTHORITY To BORROW. — "(1) STUDENT ELIGIBILITY.— Graduate and professional students"; '« (B) by indenting the remaining text of subsection (a) two em spaces; and «^

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