Page:United States Statutes at Large Volume 112 Part 2.djvu/825

 PUBLIC LAW 105-244 -OCT. 7, 1998 112 STAT. 1709 of delinquency occurs on or after the date of enactment of this Act. (d) COHORT DEFAULT RATE. —Section 435(m) is amended— 20 USC 1085. (1) in paragraph (I)(B), by striking "insurance, and, in considering appeals with respect to cohort default rates pursuant to subsection (a)(3), exclude" and inserting "insurance. In considering appeals with respect to cohort default rates pursuant to subsection (a)(3), the Secretary shall exclude, from the calculation of the number of students who entered repayment and from the calculation of the number of students who default,"; and (2) in paragraph (2)(C), by adding at the end the following: "The Secretary may require guaranty agencies to collect data with respect to defaulted loans in a manner that will permit the identification of any defaulted loan for which (i) the borrower is currently making payments and has made not less than 6 consecutive on-time payments by the end of such following fiscal year, and (ii) a guaranty agency has renewed the borrower's title IV eligibility as provided in section 428F(b).''; and (3) in paragraph (4), by adding at the end the following: "(D) The Secretary shall publish the report described in Publication, subparagraph (C) by September 30 of each year.". Deadline. SEC. 430. DELEGATION OF FUNCTIONS. Section 436 (20 U.S.C. 1086) is amended to read as follows: "SEC. 436. DELEGATION OF FUNCTIONS. "(a) IN GENERAL.— An eligible lender or guaranty agency that contracts with another entity to perform any of the lender's or agency's functions under this title, or otherwise delegates the performance of such functions to such other entity— "(1) shall not be relieved of the lenders or agency's duty to comply with the requirements of this title; and "(2) shall monitor the activities of such other entity for compliance with such requirements. "(b) SPECIAL RULE. —^A lender that holds a loan made under part B in the lender's capacity as a trustee is responsible for complying with all statutory and regulatory requirements imposed on any other holder of a loan made under this part.". SEC. 43L DISCHARGE. Section 437(c)(l) (20 U.S.C. 1087(c)(l)) is amended— (1) by inserting after "falsely certi^ed by the eligible institution," the following: "or if the institution failed to make a refund of loan proceeds which the institution owed to such student's lender,"; and (2) by adding at the end the following new sentences: "In the case of a discharge based upon a failure to refund, the amount of the discharge shall not exceed that portion of the loan which should have been refunded. The Secretary Reports, shall report to the Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate annually as to the dollar amount of loan discharges attributable to failures to make refunds.".

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