Page:United States Statutes at Large Volume 106 Part 3.djvu/201

 PUBLIC LAW 102-408—OCT. 13, 1992 106 STAT. 1995 "(b) CERTAIN LIMITATIONS AND PRIORITIES. — "(1) LIMITATIONS REGARDING LENDERS, STATES, OR AREAS. — The Secretary may, if necessary to assure an equitable distribution of the benefits of this subpart, assign, within the maximum amounts specified in subsection (a). Federal loan insurance quotas applicable to eligible lenders, or to States or areas, and may nrom time to time reassign unused portions of these quotas. "(2) PRIORITY FOR CERTAIN LENDERS.— In providing certificates of insurance under section 706 through comprehensive contracts, the Secretary shall give priority to eligible lenders that agree— "(A) to make loans to students at interest rates below the rates prevailing, during the period involved, for loans covered by Federal loan insurance pursuant to this subpart; or "(B) to make such loans under terms that are otherwise favorable to the student relative to the terms under which eligible lenders are generally making such loans during such period. "(c) AUTHORITY OF STUDENT LOAN MARKETING ASSOCIATION.— "(1) IN GENERAL. — Subject to paragraph (2), the Student Loan Marketing Association, established under part B of title IV of the Higher Education Act of 1965, is authorized to make advances on the security of, purchase, service, sell, consolidate, or otherwise deal in loans which are insured by the Secretary under this subpart, except that if any loan made under this subpart is included in a consolidated loan pursuant to the authority of the Association under part B of title IV of the Higher Education Act of 1965, the interest rate on such consolidated loan shall be set at the weighted average interest rate of all such loans offered for consolidation and the resultant per centum shall be rounded downward to the nearest oneeighth of 1 per centum, except that the interest rate shall be no less than the applicable interest rate of the guaranteed student loan program established under part B of title IV of the Higher Education Act of 1965. In the case of such a consolidated loan, the borrower shall be responsible for any interest which accrues prior to the beginning of the repayment period of the loan, or which accrues during a period in which principal need not be paid (whether or not such principal is in fact paid) by reason of any provision of the Higher Education Act of 1965. "(2) APPLICABILITY OF CERTAIN FEDERAL REGULATIONS.— With respect to Federal regulations for lenders, this subpart may not be construed to preclude the applicability of such regulations to the Student Loan Marketing Association or to any other entity in the business of purchasing student loans, including such regulations with respect to applications, contracts, and due diligence. • «EC. 703. LIMITATIONS ON INDIVIDUAL INSURED LOANS AND ON 42 USC 292B. LOAN INSURANCE. "(a) IN GENERAL.— The total of the loans made to a student in any academic year or its equivalent (as determined by the Secretary) which may be covered by Federal loan insurance under this subpart may not exceed $20,000 in the case of a student

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