Page:United States Statutes at Large Volume 112 Part 2.djvu/812

 112 STAT. 1696 PUBLIC LAW 105-244 —OCT. 7, 1998 20 USC 1078-3. Termination date. 20 USC 1078-7 note. Regulations. (d) EXTENSION OF AUTHORITY.— Section 428C(e) is amended by striking "September 30, 2002" and inserting "September 30, 2004". (e) SPECIAL RULE.— Section 428C(f) is amended— (1) by redesignating paragraph (2) as paragraph (3); and (2) by inserting after paragraph (1) the following: "(2) SPECIAL RULE.— For consolidation loans based on applications received during the period from October 1, 1998 through January 31, 1999, inclusive, the rebate described in paragraph (1) shall be equal to 0.62 percent of the principal plus accrued unpaid interest on such loan.". SEC. 421. DEFAULT REDUCTION PROGRAM. The heading for subsection (b) of section 428F (20 U.S.C. 1078- 6) is amended by striking "SPECIAL RULE" and inserting "SATISFAC- TORY REPAYMENT ARRANGEMENTS TO RENEW ELIGIBILITY". SEC. 422. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS. (a) SPECIAL RULE. — Section 428G(a) (20 U.S.C. 1078-7(a)) is amended by adding at the end the following: "(3) SPECIAL RULE.— An institution whose cohort default rate (as determined under section 435(m)) for each of the 3 most recent fiscal years for which data are available is less than 10 percent may disburse any loan made, insured, or guaranteed under this part in a single installment for any period of enrollment that is not more than 1 semester, 1 trimester, 1 quarter, or 4 months.", (b) DISBURSEMENT.— Section 428G(b)(l) is amended by adding at the end the following new sentence: "An institution whose cohort default rate (as determined under section 435(m)) for each of the three most recent fiscal years for which data are available is less than 10 percent shall be exempt from the requirements of this paragraph. ". (c) EXCLUSIONS.— Section 428G<e) is amended— (1) by striking "or made" and inserting ", made"; and (2) by inserting ", or made to a student to cover the cost of attendance in a program of study abroad approved by the home eligible institution if the home eligible institution has a cohort default rate (as calculated under section 435(m)) of less than 5 percent" before the period. (d) EFFECTIVE DATE. —The amendments made by subsections (a) and (b) shall be effective during the period beginning on October 1, 1998, and ending on September 30, 2002. SEC. 423. UNSUBSIDIZED LOANS. (a) ELIGIBLE BORROWERS.—Subsection (b) of section 428H (20 U.S.C. 1078-8(b)) is amended to read as follows: "(b) ELIGIBLE BORROWERS.— Any student meeting the requirements for student eligibility under section 484 (including graduate and professional students as defined in regulations promulgated by the Secretary) shall be entitled to borrow an unsubsidized Federal Stafford Loan if the eligible institution at which the student has been accepted for enrollment, or at which the student is in attendance, has— "(1) determined and documented the student's need for the loan based on the student's estimated cost of attendance (as determined under section 472) and the student's estimated

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