Page:United States Statutes at Large Volume 112 Part 2.djvu/827

 PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1711 loan fees. "(B) SPECIAL RULE.— If the Secretary collects loan fees under this subsection through the reduction of interest and special allowance payments, and the total amount of interest and special allowance payable under section 428(a)(3)(A) and subsection (b), respectively, is less than the amount of such loan fees, then the Secretary shall deduct the amount of the loan fee balance from the amount of interest and special allowance payments that would otherwise be payable, in subsequent quarterly increments until the balance has been deducted.". (d) LENDING FROM PROCEEDS OF TAX-EXEMPT OBLIGATIONS. — (1) AMENDMENT. —Subsection (e) of section 438 is amended 20 USC 1087-1. to read as follows: "(e) NONDISCRIMINATION. —In order for the holders of loans which were made or purchased with funds obtained by the holder from an Authority issuing obligations, the income from which is exempt from taxation under the Internal Revenue Code of 1986, to be eligible to receive a special allowance under subsection (b)(2) on any such loans, the Authority shall not engage in any pattern or practice which results in a denial of a borrower's access to loans under this part because of the borrower's race, sex, color, religion, national origin, age, disability status, income, attendance at a particular eligible institution within the area served by the Authority, length of the borrower's educational program, or the borrowei^s academic year in school.". (2) EFFECTIVE DATE.— The amendment made by paragraph 20 USC 1087-1 (1) shall be effective as of the date the plan required by section J^ote. 438(e)(l) (as such section was in effect prior to such amendment) was approved by the Secretary or the Governor (whichever was the case). No Authority shall have a right or cause of action against the Secretary for any amounts paid to or offset by the Secretary pursuant to a final settlement agreement entered into prior to July 1, 1998, resolving any audit or program review findings alleging violations of any provision of section 438(e) (as in effect prior to such amendment). SEC. 434. FEDERAL FAMILY EDUCATION LOAN INSURANCE FUND. 20 USC 1081 Any funds in the insurance fund, as established under section 431 of the Higher Education Act of 1965 (20 U.S.C. 1081), on the date of enactment of this Act shall be transferred to and deposited in the Treasury. All funds received by the Secretary of Education under subsection (a) of such section after the date of enactment of this Act shall be deposited into the fund in accordance with such subsection. PART C—FEDERAL WORK-STUDY PROGRAMS SEC 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY SERVICES. (a) AUTHORIZATION OF APPROPRIATIONS. —Section 441(b) (42 U.S.C. 2751(b)) is amended by striking "$800,000,000 for fiscal year 1993" and inserting "$1,000,000,000 for fiscal year 1999". (b) DEFINITION OF COMMUNITY SERVICES. — Section 441(c) is amended—
 * (II) withdraws from the program with unpaid

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