Page:United States Statutes at Large Volume 106 Part 1.djvu/608

 106 STAT. 576 PUBLIC LAW 102-325—JULY 23, 1992 (b) CONVERSION OF EXISTING LOANS.—Institutions may, after July 1, 1992, convert all outstanding loans made under part D of title IV of the Higher Education Act of 1965 (as such Act was in effect on such date) to part E loans, provided that such institution— (1) notify the borrower of such conversion; (2) obtam a signed part E promissory note from the borrower for the remsdning amount outstanding; and (3) provide the borrower in writing with a description of all terms and conditions of the new loan. PART E—FEDERAL PERKINS LOANS SEC. 461. PROGRAM DESIGNATION; AUTHORIZATION. (a) PROGRAM TITLE.— (1) HEADING. —The heading of part E of title IV is amended to read as follows: "PART E—FEDERAL PERKINS LOANS". 20 USC I087aa. (2) NAME OF LOANS. —Section 461(a) of the Act is amended by striking "as 'Perkins Loans'" and inserting "as 'Federal Perkins Loans'". (b) ELIGIBILITY FOR STUDY ABROAD.— Section 461(a) of the Act is amended by inserting "or while engaged in programs of study abroad approved for credit by such institutions" after "in such institutions". (c) AUTHORIZATION OF APPROPRIATIONS. —Section 461(b) of the Act is amended to read as follows: "(b) AUTHORIZATION OF APPROPRIATIONS. — (1) For the purpose of enabling the Secretary to make contributions to student loein funds established under this part, there are authorized to be appro- Eriated $250,000,000 for fiscal year 1993 and such sums as may e necessary for each of the 4 succeeding fiscal years. "(2) In addition to the funds authorized under paragraph (1), there are hereby authorized to be appropriated such sums for fiscal year 1997 and each of the 5 succeeding fiscal years as may be necessary to enable students who have received loans for academic years ending prior to October 1, 1997, to continue or complete courses of study.". SEC. 462. ALLOCATION OF FUNDS. 20 USC i087bb. (a) INSTITUTIONAL ALLOCATION. —Section 462(a)(1)(A) of the Act is amended by striking "such institution received" and inserting "allocated to such institution". (b) APPEALS PROCESS. —Section 462(e) (20 U.S.C. 1087bb(e)) is amended— (1) by striking "An" and inserting "(1) An"; and (2) by adding at the end the following new paragraph: "(2) The Secretary shall establish an appesds process by which the anticipated coUections required in paragraph (1) may be wEQved for institutions with low default rates in the program assisted under this part.". (c) DEFAULT REDUCTION AND DEFAULT PENALTIES. — Section 462(f) of the Act is amended to read as follows: "(f) DEFAULT REDUCTION AND DEFAULT PENALTIES. —(1) For any fiscal year prior to fiscal year 1994, any institution which has a default rate which equals or exceeds 7.5 percent but does not exceed the maximimi default rate applicable to the award year

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