Page:United States Statutes at Large Volume 106 Part 1.djvu/610

 106 STAT. 578 PUBLIC LAW 102-325—JULY 23, 1992 the end of the award year immediately following the year in which they entered repa3anent. "(D) A loan on which a payment is made by the institution of higher education, its owner, agency, contractor, employee, or any other entity or individual affiliated with such institution, in order to avoid default by the borrower, is considered as in default for the purposes of this subsection. "(E) Any loan that is in default but on which the borrower has made satisfactory arrangements to resume payment or any loan which has been rehabilitated before the end of such following award year is not considered as in default for purposes of this subsection. "(F) In the case of a student who has attended and borrowed at more than one school, the student (and his or her subsequent repayment or default) is attributed to the school for attendsuice at which the student received the loan that entered repayment in the award year. Regulations. "(G) 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, consolidation, change of ownership or control or other means as determined by the Secretary.", (f) REALLOCATION OF EXCESS ALLOCATIONS.— Section 462(j) of the Act (20 U.S.C. 1087bb(j)) is amended to read as follows: "0*) REALLOCATION OF EXCESS ALLOCATIONS.— "(1) IN GENERAL,—(A) If an institution of higher education returns to the Secretary any portion of the sums allocated to such institution under this section for any fiscal year, the Secretary shall reallocate 80 percent of such returned portions to participating institutions in an amount not to exceed such participating institution's excess eligible amounts as determined under paragraph (2). "(B) For the purpose of this subsection, the term 'participating institution' means an institution of higher education that— "(i) was a participant in the program assisted under this part in fiscal year 1985; and "(ii) did not receive an allocation under subsection (a) in the fiscal year for which the reallocation determination is made. "(2) EXCESS ELIGIBLE AMOUNT. —For any participating institution, the excess eligible amount is the amount, if any, by which— "(A)(i) that institution's eKgible amount (as determined under paragraph (3) of subsection (c)), divided by (ii) the sum of the eligible amounts of all participating institutions (as determined under paragraph (3)), mxiltiplied by (iii) the amount of funds available for reallocation under this subsection; exceeds "(B) the amoxmt required to be allocated to that institution under subsection (c) of section 462. "(3) REMAINDER.— The Secretary shall reallocate the remainder of such returned portions in accordance with regulations of the Secretary. "(4) ALLOCATION REDUCTIONS.—If under paragraph (1) of this subsection an institution returns more than 10 percent of its allocation, the institution's allocation for the next fiscal year

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