Page:United States Statutes at Large Volume 106 Part 1.djvu/583

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 551 by the institution) and ceased to be in a period of forbearance based on such enrollment. Each eligible lender of a loan made under section 428A shall provide the guaranty agency with the information necessary to determine when the loan entered repayment for purposes of this subsection, and the guaranty agency shall provide such information to the Secretary. "(3) REGULATIONS TO PREVENT EVASIONS. —The Secretary shall prescribe regulations designed to prevent an institution from evading the application to that institution of a default rate determination under this subsection through the use of such measures as branching, consoUdation, change of ownership or control, or any similar device.". SEC. 428. REPAYMENTS BY SECRETARY. Section 437 of the Act (20 U.S.C. 1087) is amended to read as follows: "REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, OR DISABLED BORROWERS; TREATMENT OF BORROWERS ATTENDING CLOSED SCHOOLS OR FALSELY CERTIFIED AS ELIGIBLE TO BORROW "SEC. 437. (a) REPAYMENT IN FULL FOR DEATH AND DISABILITY. — If a student borrower who has received a loan described in subparagraph (A) or (B) of section 428(a)(1) dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Secretary), then the Secretary shall discharge the borrower's liability on the loan by repaying the £unount owed on the loan. "(b) REPAYMENT OF AMOUNT SUBJECT TO BANKRUPTCY ACTION. — If the collection of a loan described in subparagraph (A) or (B) of section 428(a)(1) or sections 428A, 428B, 428C, or 428H is stayed in any action under title 11, United States Code, the Secretary shall repay the impaid beilance of principal and interest owed on the loan. "(c) DISCHARGE. — "(1) IN GENERAL.— If a student borrower who received, on or after January 1, 1986, a loan made, insured, or guaranteed under this part is unable to complete the program in which the borrower is enrolled due to the closure of the institution or if such student's eligibility to borrow under this part was falsely certified by the eligible institution, then the Secretary shall discharge the borrower's Uability on the loan (including interest and collection fees) by repaying the amount owed on the loan and shall subsequently pursue any claim available to such borrower against uie institution and its affihates and principals or settle the loan obhgation pursuant to the financial responsibihty authority under subpart 3 of part H. "(2) ASSIGNMENT. —^A borrower whose loan has been discharged pursuant to this subsection shall be deemed to have assigned to the United States the right to a loan refimd up to the amount discharged agsdnst the institution and its affiliates and principals. "(3) ELIGIBILITY FOR ADDITIONAL ASSISTANCE.— The period of a student's attendance at an institution at which the student was imable to complete a course of study due to the closing of the institution shall not be considered for purposes of calculating the student's period of eligibility for additional assistance under this title.

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