Page:United States Statutes at Large Volume 106 Part 1.djvu/566

 106 STAT. 534 PUBLIC LAW 102-325—JULY 23, 1992 "(v) is equal to or greater than $60,000, then such consoU- dation loan shall be repaid in not more than 30 years.". 20 USC 1078-3. (g) EXTENSION OF AUTHORITY. —Section 428C(d) of the Act is amended by striking "September 30, 1992" and inserting "September 30, 1998". SEC. 420. DEFAULT REDUCTION PROGRAMS. Section 428F of the Act (20 U.S.C. 1078-6) is amended— (1) by striking subsection (a); (2) in subsection (b)— (A) in paragraph (1)(A)— (i) by striking "Upon" and inserting "Each guaranty agency shall enter into an agreement with the Secretary which shall provide that upon"; and (ii) by adding at the end the following new sentence: "Neither the guaranty agency nor the Secretary shall demand from a borrower as monthly payment amounts referred to in this paragraph more than is reasonable and affordable based upon the borrower's total financial circumstances."; and (B) in paragraph (3), by inserting "or grants" after 'loans"; (3) by redesignating subsection (b) (as amended in paragraph (2)) as subsection (a); and (4) by adding at the end the following new subsection: "(b) SPECIAL RULE.— Each guaranty agency shall establish a program which allows a borrower with a defaulted loan or loans to renew eligibihty for all title IV student financial assistance (regardless of whether the defaulted loan has been sold to an eligible lender) upon the borrower's payment of 6 consecutive monthly payments. The guaranty agency shall not demand from a borrower as a monthly payment amount under this subsection more than is reasonable and affordable based upon the borrower's total financial circumstances.". SEC. 421. DISBURSEMENT RULES. (a) MONTHLY OR WEEKLY DISBURSEMENT. —Section 428G(c) of the Act (20 U.S.C. 1078-7) is amended— (1) by striking "and" at the end of paragraph (1); (2) by striking the period at the end of paragraph (2) and inserting "; and"; and (3) by adding at the end the following new paragraph: "(3) notwithstanding subsection (a)(2), may, with the permission of the borrower, be disbursed on a weekly or monthly basis, provided that the proceeds of the loan are disbursed in substantially equal weekly or monthly installments, as the case may be, over the period, of enrollment for which the loan is made.. (b) OVERAWARD ADJUSTMENTS. — Section 428G(d)(2) of the Act is amended by inserting before the period at the end of the first sentence the following: ", except that overawards permitted pursuant to section 443(b)(4) of the Act shall not be construed to be overawards for purposes of this paragraph". (c) SALES PRIOR TO DISBURSEMENT PROHIBITED. — Section 428G of the Act is amended by adding at the end thereof the following new subsection: " (g) SALES PRIOR TO DISBURSEMENT PROHIBITED.^AU eligible lender shall not sell or transfer a promissory note for any loan

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