Page:United States Statutes at Large Volume 112 Part 2.djvu/833

 PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1717 Reports. Deadline. "(7) REPAYMENT INCENTIVES.— "(A) IN GENERAL.— Notwithstanding any other provi- Regulations, sion of this part, the Secretary is authorized to prescribe by regulation such reductions in the interest rate paid by a Dorrower of a loan made under this part as the Secretary determines appropriate to encourage on-time repayment of the loan. Such reductions may be offered only if the Secretary determines the reductions are cost neutral and in the oest financial interest of the Federal Government. Any increase in subsidy costs resulting from such reductions shall be completely offset by corresponding savings in funds available for the William D. Ford Federal Direct Loan Program in that fiscal year from section 458 and other administrative accounts. " (B) ACCOUNTABILITY. — Prior to publishing regulations proposing repayment incentives, the Secretary shall ensure the cost neutrality of such reductions. The Secretary shall not prescribe such regulations in final form unless an official report from the Director of the Office of Management and Budget to the Secretary and a comparable report from the Director of the Congressional Budget Office to the Congress each certify that any such reductions will be completely cost neutral. Such reports shall be transmitted to the Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives not less than 60 days prior to the publication of regulations proposing such reductions.". (c) CONSOLIDATION LOANS.— The first sentence of section 455(g) is amended by striking everjrthing after "section 428C(a)(4)" and inserting a period. (d) EFFECTIVE DATE. —The amendments made by subsection (a) shall apply with respect to any loan made under part D of title IV of the Higher Education Act of 1965 for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, except that such amendments shall apply with respect to a Federal Direct Consolidation Loan for which the application is received on or after October 1, 1998, and before July 1, 2003. SEC. 453. CONTRACTS. Section 456(b) (20 U.S.C. 1087f(b)) is amended— (1) in paragraph (3), by inserting "and" after the semicolon; (2) by striking paragraph (4); and (3) by redesignating paragraph (5) as paragraph (4). SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES. Section 458 (20 U.S.C. 1087h) is amended— (1) by amending subsection (a) to read as follows: "(a) ADMINISTRATIVE EXPENSES.— "(1) IN GENERAL. —Each fiscal year there shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for— "(A) administrative costs under this part and part B, including the costs of the direct student loan programs under this part; and "(B) account maintenance fees payable to guaranty agencies under part B and calculated in accordance with subsections (b) and (c), 20 USC 1087e. Applicability. 20 USC 1087e note. 5&-194O-98 - 27:QL3 Part 2

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