Page:United States Statutes at Large Volume 106 Part 1.djvu/584

 106 STAT. 552 PUBLIC LAW 102-325—JULY 23, 1992 "(4) SPECIAL RULE. — ^A borrower whose loan has been discharged pursuant to this subsection shall not be precluded from receiving additional grants, loans, or work assistance under this title for which the borrower would be otherwise eligible (but for the default on such discharged loan). (5) REPORTING.— The Secretary shall report to credit bureaus with respect to loans which have been discharged pursuant to this subsection. "(d) REPAYMENT OF LOANS TO PARENTS. — If a student on whose behalf a parent has received a loan described in section 428B dies, then the Secretary shall discharge the borrower's liability on the loan by repaying the amount owed on the loan.". SEC. 429. DEBT MANAGEMENT OPTIONS. Part B of title IV of the Act is amended by inserting after section 437 the following new section: "DEBT MANAGEMENT OPTIONS 20 USC 1087-0. "SEC. 437A. (a) PROGRAM AUTHORITY. —For the purpose of offering additional debt management options, the Secretary is authorized, to the extent of funds appropriated under subsection (d)— "(1) to acquire from eligible holders the notes of borrowers under this part (other than section 428B) who are considered to be at high risk of default and who submit a request to the Secretary for an alternative repayment option; "(2) to offer such borrowers one or more alternative repay- ment options, which may include graduated or extended repay- ment and which shall, subject to subsection (b)(2), include an income contingent repayment option established in accordance with subsection (b); and "(3) to enter into contracts or other agreements with private firms or other agencies of the Government as necessary to carry out the purposes of this section. "(b) INCOME CONTINGENT REPAYMENT OPTION. — " (1) REGULATIONS.— For the purposes of subsection (a)(2), the Secretary shall, by regulation, establish the terms and / conditions for an income contingent repa3ment option. Such regulations shall specify the schedules under which income will be assessed for repayment of loans, shall permit the discharge of the remaining obligation on the loan not later than 25 years after the commencement of income contingent repay- ment, and may provide for the potential collection of amounts in excess of the principal and interest owed on the original loan or loans. "(2) COLLECTION MECHANISM DETERMINATION REQUIRED.— Such regulations shall not be effective unless the Secretary publishes a finding that— "(A) the Secretary has, pursuant to subsection (a)(3), established a collection mechanism that will provide a high degree of certainty that collections will be made in accordance with the repa5ment option established under paragraph (1); and "(B) the use of such repayment option and collection mechanism will result in an increase in the net amount the Government will collect. "(c) DETERMINATIONS OF HIGH RISK OF DEFAULT.— In making determinations under subsection (a)(1), the Secretary shall—

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