Page:United States Statutes at Large Volume 112 Part 1.djvu/523

 ;: rag PUBLIC LAW 105-178-^JUNE 9, 1998 112 STAT. 497 rate in the Federal Register as soon as practicable after the date of determination.". (2) CONFORMING AMENDMENT. —Section 428B(d)(4) (20 U.S.C. 1078-2(d)(4)) is amended by striking "section 427A(cr and inserting "section 427A for loans made under this section", (b) SPECIAL ALLOWANCES. — (1) AMENDMENT. — Section 438(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087-l(b)(2)) is amended by adding at the end the following new subparagraph: "(G) LOANS DISBURSED BETWEEN JULY i, 1998, AND OCTOBER 1, 1998.— " (i) IN GENERAL.—Subject to paragraph (4) and clauses (ii), (iii), and (iv) of this subparagraph, and except as provided in subparagraph (B), the special allowance psdd pursuant to this subsection on loans for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, shall be computed— "(I) by determining the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period; "(II) by subtracting the applicable interest rates on such loans from such average bond equivalent rate; "(III) by adding 2.8 percent to the resultant percent; and "(IV) by dividing the resultant percent by 4. "(ii) IN SCHOOL AND GRACE PERIOD.— In the case of any loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, and for which the applicable rate of interest is described in section 427A(j)(2), clause (i)(III) of this subparagraph shall be applied by substituting *2.2 percent' for '2.8 percent', "(iii) PLUS LOANS.— In the case of any loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, and for which the applicable rate of interest is described in section 427A(j)(3), clause (i)(III) of this subparagraph shall be applied by substituting subparagraph. "(iv) CONSOLIDATION LOANS. — This subparagraph shall not apply in the case of any consolidation loan. "(v) LIMITATION ON SPECIAL ALLOWANCES FOR PLUS LOANS. —In the case of PLUS loans made under section 428B and disbursed on or after July 1, 1998, and before October 1, 1998, for which the interest rate is determined under 427A(j)(3), a special allowance shall not be paid for such loan for such unless the rate determined under subparagraph (A) of such section (without regard to subparagraph (B) of such section) exceeds 9.0 percent.". (2) CONFORMING AMENDMENTS.—Section 438(b)(2) of such Act is further amended— (A) in subparagraph (A), by striking "(E), and (F)" and inserting "(E), (F), and (G)"; (B) in subparagraph (B)(iv), by striking "(E), or (F)" and inserting "(E), (F), or (G)"; and (C) in subparagraph (C)(ii), by striking "In the case" and inserting "Subject to subparagraph (G), in the case".
 * 3.1 percent' for *2.8 percent', subject to clause (v) of this

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