Page:United States Statutes at Large Volume 106 Part 1.djvu/548

 publication. 106 STAT. 516 PUBLIC LAW 102-325—JULY 23, 1992 (1) by redesignating subsections (e), (f) and (g) as subsections (f), (g) and (h), respectively; and (2) by inserting after subsection (d) the following new subsection: "(e) INTEREST RATES FOR NEW BORROWERS AFTER OCTOBER 1, 1992.— " (1) IN GENERAL. —Notwithstanding subsections (a), (b), and (d) of this section, with respect to any loan (other than a loan made pursuant to sections 428A, 428B and 428C) for which the first disbursement is made on or after October 1, 1992, to any borrower who, on the date of entering into the note or other written evidence of the loan, has no outstanding balance of principal or interest on any loan made, insured, or guaranteed under this part, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(B) 3.10 percent, except that such rate shall not exceed 9 percent. Federal " (2) CONSULTATION.—The Secretary shall determine the S^hif^wnn applicable rate of interest under paragraph (1) after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.". SEC. 416. AMENDMENTS TO SECTION 428. (a) FEDERAL INTEREST SUBSIDIES. — (1) REQUIREMENTS TO RECEIVE SUBSIDY. — Section 428(a)(2)(C) of the Act (20 U.S.C. 1078(a)(2)(C)) is amended— (A) by amending clause (i) to read as follows: "(i) a student's estimated financial assistance means, for the period for which the loan is sought, the Eimount of assistance such student will receive under subpart 1 of part A (as determined in accordance with section 484(b)), subpart 3 of part A, and parts C and E of this title, and any veterans' education benefits paid because of enrollment in a postsecondary education institution, including veterans' education benefits (as defined in section 480(c)), plus other scholarship, grant, or loan assistance."; and (B) by amending clause (ii) to read as follows: "(ii) the determination of need and of the amount of a loan by an eligible institution under subparagraph (B) with respect to a student shall be calculated in accordance with part F.". (2) LIMITATION ON INTEREST PRIOR TO FIRST DISBURSEMENT.— Section 428(a)(3)(A) of the Act is amended by adding at the end the following new clause: "(v) A lender may not receive interest on a loan for any period that precedes the date that is— "(I) in the case of a loan disbursed by check, 10 days before the first disbursement of the loan; or "(II) in the case of a loan disbursed by electronic funds transfer, 3 days before the first disbursement of the loan.".

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