Page:United States Statutes at Large Volume 112 Part 2.djvu/842

 112 STAT. 1726 PUBLIC LAW 105-244 —OCT. 7, 1998 (1) in paragraph (I)(D)— (A) by striking "(i) 3 percent" and all that follows through "or (iii)"; and (B) by striking "subparagraph (A)(i)" and inserting " paragraph (2)(A)(ir; (2) in the matter following clause (iv) of paragraph (2)(A), by striking "subparagraph (B)" and inserting "subparagraph (A) of paragraph (1)"; (3) by adding at the end of paragraph (2) the following: "(C) An individual with an outstanding loan balance who meets the eligibility criteria for a deferment described in subparagraph (A) as in effect on the date of enactment of this subparagraph shall be eligible for deferment under this paragraph notwithstanding any contrary provision of the promissory note under which the loan or loans were made, and notwithstanding any amendment (or effective date provision relating to any amendment) to this section made prior to the date of such deferment."; and (4) by adding at the end the following: "(7) liiere shall be excluded from the 9-month period that begins on the date on which a student ceases to carry at least one-half the normal full-time academic workload (as described in paragraph (1)(A)) any period not to exceed 3 years during which a borrower who is a member of a reserve component of the Armed Forces named in section 10101 of title 10, United States Code, is called or ordered to active duty for a period of more than 30 days (as defined in section 101(d)(2) of such title). Such period of exclusion shall include the period necessary to resume enrollment at the borrower's next available regular enrollment period.". (d) DISCHARGE; REHABILITATION; INCENTIVE REPAYMENT.— 20 USC 1087dd. Section 464 is amended by adding at the end the following: "(g) DISCHARGE. — "(1) IN GENERAL.—If a student borrower who received a loan made under this part on or after January 1, 1986, is unable to complete the program in which such student is enrolled due to the closure of the institution, then the Secretary shall discharge the borrower's liability on the loan (including the interest and collection fees) and shall subsequently pursue any claim available to such borrower against the institution and the institution's affiliates and principals, or settle the loan obligation pursuant to the financial responsibility standards described in section 498(c). "(2) ASSIGNMENT.—A borrower whose loan has been discharged pursuant to this subsection shall be deemed to have assigned to the United States the right to a loan refund in an amount that does not exceed the amount discharged against the institution and the institution's affiliates and principals. " (3) ELIGIBILITY FOR ADDITIONAL ASSISTANCE.—The period during which a student was unable to complete a course of study due to the closing of the institution shall not be considered for purposes of calculating the student's period of eligibility for additional assistance under this title. "(4) SPECIAL RULE. —A borrower whose loan has been discharged pursuant to this subsection shall not be precluded, because of that discharge, from receiving additional grant, loan, or work assistance under this title for which the borrower

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