Page:United States Statutes at Large Volume 112 Part 1.djvu/524

 112 STAT. 498 PUBLIC LAW 105-178-^JUNE 9, 1998 (c) DIRECT LOAN INTEREST RATES. —- Section 455(b) (20 U.S.C. 1087e(b)) is amended— (1) by redesignating paragraph (5) as paragraph (6); and (2) by inserting after paragraph (4) the following new paragraph: "(5) TEMPORARY INTEREST RATE PROVISION.— " (A) RATES FOR FDSL AND FDUSL. —Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans 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— "(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(ii) 2.3 percent, except that such rate shall not exceed 8.25 percent. "(B) IN SCHOOL AND GRACE PERIOD RULES. — Notwithstanding the preceding paragraphs of this subsection, with respect to any FedergJ Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan 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— "(i) prior to the beginning of the repayment period oftheloan;or "(ii) 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) or 427(a)(2)(C), shall be determined under subparagraph (A) by substituting '1.7 percent' for *2.3 percent'. "(C) PLUS LOANS. —Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall be determined under subparagraph (A)— "(i) by substituting '3.1 percent' for *2.3 percent'; and "(ii) by substituting '9.0 percent' for '8.25 percent'.". Subtitle D—Block Grants for Social Services SEC. 8401. BLOCK GRANTS FOR SOCIAL SERVICES. (a) REDUCTION OF GRANTS.—Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is amended by striking paragraphs (7) and (8) and inserting the following: " (7) $2,380,000,000 for the fiscal year 1997; " (8) $2,380,000,000 for the fiscal year 1998; "(9) $2,380,000,000 for the fiscal year 1999; " (10) $2,380,000,000 for the fiscal year 2000; and

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