Page:United States Statutes at Large Volume 107 Part 1.djvu/847

 PUBLIC LAW 103-82—SEPT. 21, 1993 107 STAT. 821 "(D) contains or is accompanied by such other information as the Corporation may require. "(2) DISBURSEMENT OF REPAYMENTS.— Upon receipt of an application from an eligible individual of an application that complies with paragraph (1), the Corporation shall, as promptly as practicable consistent with paragraph (5), disburse the amount of the national service educational award that the eligible individual has earned. Such disbursement shall be made by check or other means that is payable to the holder of the loan and requires the endorsement or other certification by the eligible individual. "(3) APPLICATION OF DISBURSED AMOUNTS.— If t he amount disbursed under paragraph (2) is less than the principal and accrued interest on any qualiifled student loan, such amount shall be applied according to the specified priorities of the individual. "(4) REPORTS BY HOLDERS. — Any holder receiving a loan payment pursuant to this subsection shall submit to the Corporation such information as the Corporation may require to verify that such payment was applied in accordance with this subsection and any regulations prescribed to carry out this subsection. "(5) NOTIFICATION OF INDIVIDUAL. —The Corporation upon disbursing the national service educational award, shall notify the individual of the amount paid for each outstanding loan and the date of payment. "(6) AUTHORITY TO AGGREGATE PAYMENTS. — The Corporation may, by regulation, provide for the aggregation of payments to holders under this subsection. "(7) DEFINITION OF QUALIFIED STUDENT LOANS. —AS used in this subsection, the term 'qualified student loans' means— "(A) any loan made, insured, or guaranteed pursuant to title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), other than a loan to a parent of a student pursuant to section 428B of such Act (20 U.S.C. 1078- 2); and "(B) any loan made pursuant to title VII or VIII of the Public Health Service Act (42 U.S.C. 292a et seq.). "(8) DEFINITION OF HOLDER. —AS used in this subsection, the term 'holder* with respect to any eligible loan means the original lender or, if the loan is subsequently sold, transferred, or assigned to some other person, and such other person acquires a legally enforceable right to receive payments from the borrower, such other person. "(c) USE OF EDUCATIONAL AWARDS TO PAY CURRENT EDU- CATIONAL EXPENSES.— "(1) APPLICATION BY ELIGIBLE INDIVIDUAL. —An eligible individual under section 146 who desires to apply the individual's national service educational award to the payment of current full-time or part-time educational expenses shall, on a form prescribed by the Corporation, submit an application to the institution of higher education in which the student will be enrolled that contains such information as the Corporation may require to verify the individual's eligibility. "(2) SUBMISSION OF REQUESTS FOR PAYMENT BY INSTITU- TIONS.—An institution of higher education that receives one or more applications that comply with paragraph (1) shall sub-

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