Page:United States Statutes at Large Volume 112 Part 1.djvu/522

 112 STAT. 496 PUBLIC LAW 105-178-^JUNE 9, 1998 Subtitle C—Temporary Student Loan Provision. SEC. 8301. TEMPORARY STUDENT LOAN PROVISION. (a) FFEL INTEREST RATES.— (1) AMENDMENT.— Section 427A of the Higher Education Act of 1965 (20 U.S.C. 1077a) is amended— (A) by redesignating subsections (j) and (k) as subsections (k) and (1), respectively; and (B) by inserting after subsection (i) the following new subsection: "(j) INTEREST RATES FOR NEW LOANS BETWEEN JULY 1, 1998 AND OCTOBER 1, 1998. — "(1) IN GENERAL.— Notwithstanding subsection (h), but subject to paragraph (2), with respect to any login made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B or 428C) for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on Jiily 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(B) 2.3 percent, except that such rate shall not exceed 8.25 percent. "(2) IN SCHOOL AND GRACE PERIOD RULES. —Notwithstanding subsection (h), with respect to any loan under this part (other than a loan made pursuant to section 428B or 428C) for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest for interest which accrues— "(A) prior to the beginning of the repayment period oftheloan;or "(B) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(l)(M) or427(a)(2)(C), shall be determined under paragraph (1) by substituting *1.7 percent' for *2.3 percent'. " (3) PLUS LOANS. —Notwithstanding subsection (h), with respect to any loan under section 428B for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of— "(A)(i) the bond equivsdent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(ii) 3.1 percent; or "(B) 9.0 percent. Federal Register, "(4) CONSULTATION.The Secretary shall determine the publication. applicable rate of interest under this subsection after consultation with the Secretary of the Treasury and shall publish such

�