Page:United States Statutes at Large Volume 106 Part 1.djvu/575

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 543 "(4) INTERIM EVALUATION REPORTS. —The Secretary shall prepare and submit to the President and the Congress such interim reports on the evaluation described in this section as the Secretary deems appropriate, and shall submit such a final report by January 1, 1997. "(5) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to carry out this section $10,000,000 for fisced year 1993 and such simis as may be necessary for each of the 4 succeeding fiscal years.". SEC. 423. DEFAULT RATES. Section 430 of the Act (20 U.S.C. 1080) is amended by adding at the end the following new subsection: "(e) DEFAULT RATE OF LENDERS, HOLDERS, AND GUARANTY AGEN- CIES. — " (1) IN GENERAL.— The Secretary shall annually publish a list indicating the cohort default rate (determined in accordance with section 435(m)) for each originating lender, subsequent holder, and guaranty agency participating in the program assisted under this part and an average cohort default rate for all institutions of higher education within each State. "(2) REGULATIONS.—The Secretary shall prescribe regulations designed to prevent an institution from evading the application to that institution of a cohort default rate through the use of such measures as branching, consolidation, change of ownership or control, or any similar device. "(3) RATE ESTABLISHMENT AND CORRECTION.— The Secretary shall establish a cohort default rate for lenders, holders, and guaranty agencies (determined consistent with section 435(m)), except that the rate for lenders, holders, and guaranty agencies shall not reflect any loans issued in accordance with section 428(j). The Secretary shall allow institutions, lenders, holders, and guaranty agencies the opportunity to correct such cohort default rate mformation. SEC 424. REPORTS TO CREDIT BUREAUS AND INSTITUTIONS OF HIGHER EDUCATION. Section 430A(f) of the Act (20 U.S.C. 1080a(f)) is amended— (1) by striking "or" at the end of paragraph (1); (2) by striking paragraph (2) and inserting the following: "(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or "(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.". SEC. 425. ADMINISTRATIVE PROVISIONS. (a) AUTHORITY TO REGULATE SERVICERS. — Section 432(a)(1) of the Act (20 U.S.C. 1082) is amended by inserting before the semicolon the following: ", including regulations appHcable to third party servicers (including regulations concerning financial responsibility standards for, and the assessment of liabilities for program violations against, such servicers) to establish minimum standards with respect to sound management and accountabihty of programs under this part, except that in no case shall damages be assessed

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