Page:United States Statutes at Large Volume 106 Part 1.djvu/603

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 571 individual institutions for the purposes of subsection (b). Institutions of hi^er education selected by the Secretary to participate in the program may also enter into consortia for the purpose of carrying out the agreement required by section 454. «SEC. 454. AGREEMENT REQUIRED. 20 USC 1087d. "An agreement with any institution of higher education for participation in the loan demonstration program shall— ''(1) provide for the establishment and maintenance of a loan demonstration program at the institution of higher education under which— "(A) the institution of higher education will identify eligible students who seek sUident financial assistance at such institution, in accordance with section 484; ''(B) the institution of higher education will estimate the need of each such student as required by part F; "(C) the institution of higher education will originate loans to such eligible students and eligible parents in accordance with this part, and will not charge any administrative fees to such students or parents for such origination activities; "(D) the institution of higher education will provide timely information concerning the status of student and parent borrowers to the contractor or contractors responsible for loan collection pursuant to section 457; and "(E) the institution of higher education will participate in the loan demonstration program for its duration, subject to procedures for withdrawal established by section 455; "(2) provide assurances that the institution of higher education will comply with the provisions of section 463A, relating to student loan information, with respect to loans made under this part; "(3) provide that the note or evidence of obligation on the loan shall be the property of the Secretary and that the institution of higher education will act as the agent of the Secretary for the purpose of making loans under the loan demonstration program; "(4) provide that the institution of higher education will accept responsibility and liability stemming from its failure to perform its frmctions pursuant to the agreement; (5) provide that students at the institution of higher education and their parents (with respect to such students) will not be eligible to participate in the Federal Stafford Loan program, the Federal Supplemental Loans to Students program, or the Federal Plus loan program for the period during which such institution participates in the loan demonstration program; "(6) in the case of the institutions selected by the Secretary pursuant to section 453(f), include such terms and conditions as the Secretary may require by regulation for testing income contingent repayment methods, which shall include— (A) requiring such institutions to offer the option of income contingent repayment, based on an annual review of the borrowers Federal income tax return, to any student who applies for a loan under this part; "(B) the additional or different terms and conditions to be included in the notes or other agreements entered into

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