Page:United States Statutes at Large Volume 106 Part 1.djvu/578

 106 STAT. 546 PUBLIC LAW 102-325—JULY 23, 1992 "(H) borrower status change; and "(I) cures. "(2) SPECIAL RULES.—(A) The forms and procedures described in paragraph (1) shall include all aspects of the loan process as such process involves eligible lenders and guaranty agencies and shall be designed to minimize administrative costs and burdens (other than the costs and burdens involved in the transition to new forms sind procedures) involved in exchanges of data to and from borrowers, schools, lenders, secondary markets, and the Department. "(B) Nothing in this paragraph shall be construed to Hmit the development of electronic forms and procedures. "(3) SIMPLIFICATION REQUIREMENTS. —Such regulations shall include— "(A) standardization of computer formats, forms design, and guaranty agency procedures relating to the origination, servicing, and collection of loans made under this part; "(B) authorization of alternate means of document retention, including the use of microfQm, microfiche, laser disc, compact disc, and other methods allowing the production of a facsimile of the original documents; "(C) authorization of the use of computer or similar electronic methods of maintaining records relating to the performance of servicing, collection, and other regulatory requirements under this Act; and "(D) authorization and implementation of electronic data linkages for the exchange of information to and from lenders, guarantors, institutions of higher education, third party servicers, and the Department of Education for student status confirmation reports, claim filing, interest and special allowance billing, deferment processing, and all other administrative steps relating to loans made pursuant to this part where using electronic data linkage is feasible. "(4) ADDITIONAL RECOMMENDATIONS. —The Secretary shall review regulations prescribed pursuant to paragraph (1) and seek additional recommendations from guaranty agencies, lenders, institutions of higher education, students, secondary markets, third party servicers and other organizations involved in providing loans under this part, not less frequently than annually, for additional methods of simplifying and standardizing the administration of the programs authorized by this peirt. "(m) COMMON FORMS AND FORMATS.— "(1) COMMON GUARANTEED STUDENT LOAN APPLICATION FORM AND PROMISSORY NOTE.— "(A) IN GENERAL. — The Secretary, in cooperation with representatives of guaranty agencies, eligible lenders, and organizations involved in student financial assistance, shall prescribe a common application form and promissory note to be used for applying for loans under part B of this title. "(B) REQUIREMENTS. —The form prescribed by the Secretary shall— "(i) use clear, concise, and simple language to facilitate understanding of loan terms and conditions by appHcants; (ii) be formatted to require the applicant to clearly indicate a choice of lender; and

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