Page:United States Statutes at Large Volume 106 Part 1.djvu/602

 106 STAT. 570 PUBLIC LAW 102-325-JULY 23, 1992 "(b) SELECTION CRITERIA. —The Secretary shall enter into agreements with institutions of higher education which represent a crosssection of all institutions of higher education participating in part B of this title in terms of control of the institution, length of academic program, highest degree offered, size of student enrollment, percentage of students borrowing under part B, geographic location, annual loan volume, default experience and composition of the student body. "(c) PREFERENCE FOR APPLYING INSTITUTIONS. — In constituting the cross-section of institutions of higher education required by the previous subsection, the Secretary shall first enter into agreements, to the maximum extent possible consistent with the requirements of constituting the cross-section, with institutions of higher education which apply to participate in the loan demonstration program. Institutions of higher education desiring to participate in the demonstration shall submit an application containing such information as the Secretary may by regulation prescribe. "(d) DESIGNATION OF ADDITIONAL INSTITUTIONS.— If an insufficient number of institutions of higher education apply and satisfy the conditions provided in subsections (a) and (b) of this section, the Secretary shall designate additional institutions of higher education from among those eligible to participate in part B to participate in the loan demonstration program in order to satisfy the conditions provided in subsections (a) and (b) of this section. An institution of higher education designated by the Secretary pursuant to this subsection may decline to participate in the loan demonstration program for good cause pursuant to regulations established by the Secretary, "(e) LIMITATION.— The Secretary shall ensure that the annual loan volume under the FedercJ Stafford Loan program, the Federal Supplemental Loans for Students program, and the Federal Plus loan program at the institutions of higher education with which the Secretary enters into agreements under this part, in the most recent fiscal year for which data are available, represents not more than 15 percent of the loan guarantees of any guaranty agency under such programs and the Secretary shall determine that such guaranty agency will remain financially sound. "(f) SELECTION OF SUBGROUP TO TEST INCOME CONTINGENT REPAYMENT. — "(1) SELECTION.— Within the institutions of higher education selected or designated to participate in the loan demonstration program under this part, the Secretary shall select 35 percent of such institutions to offer income contingent repayment methods in accordance with section 454(6). "(2) FINDING REQUIRED.— The Secretary shall not select institutions to offer such repa3maent methods vmless the Secretary publishes a finding that-— (A) the Secretary nas established a collection mechanism that will provide a high degree of certainty that collections will be made in accordance with the repa3anent option; and "(B) the use of such repayment option and collection mechanism will result in an increase in the net gimount the Goverrmient will collect. "(g) CONSORTIA.— Institutions of higher education may apply to participate in the program pursuant to subsection (c) as consortia. The Secretary shall consider the members of the consortia as

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