Page:United States Statutes at Large Volume 120.djvu/190

 PUBLIC LAW 109–171—FEB. 8, 2006

120 STAT. 159

(B) in subparagraph (A), by striking ‘‘the parents’’ and inserting ‘‘the graduate or professional student or the parents’’; and (C) in subparagraph (B), by striking ‘‘the parents’’ and inserting ‘‘the graduate or professional student or the parents’’; (2) in subsection (b), by striking ‘‘any parent’’ and inserting ‘‘any graduate or professional student or any parent’’; (3) in subsection (c)(2), by striking ‘‘parent’’ and inserting ‘‘graduate or professional student or parent’’; and (4) in subsection (d)(1), by striking ‘‘the parent’’ and inserting ‘‘the graduate or professional student or the parent’’. (d) UNSUBSIDIZED STAFFORD LOANS FOR GRADUATE OR PROFESSIONAL STUDENTS.—Section 428H(d)(2) (20 U.S.C. 1078–8(d)(2)) is amended— (1) in subparagraph (C), by striking ‘‘$10,000’’ and inserting ‘‘$12,000’’; and (2) in subparagraph (D)— (A) in clause (i), by striking ‘‘$5,000’’ and inserting ‘‘$7,000’’; and (B) in clause (ii), by striking ‘‘$5,000’’ and inserting ‘‘$7,000’’. (e) EFFECTIVE DATE OF INCREASES.—The amendments made by subsections (a), (b), and (d) shall be effective July 1, 2007.

20 USC 1075 note.

SEC. 8006. PLUS LOAN INTEREST RATES AND ZERO SPECIAL ALLOWANCE PAYMENT.

(a) PLUS LOANS.—Section 427A(l)(2) (20 U.S.C. 1077a(l)(2)) is amended by striking ‘‘7.9 percent’’ and inserting ‘‘8.5 percent’’. (b) CONFORMING AMENDMENTS FOR SPECIAL ALLOWANCES.— (1) AMENDMENTS.—Subparagraph (I) of section 438(b)(2) (20 U.S.C. 1087–1(b)(2)) is amended— (A) in clause (iii), by striking ‘‘, subject to clause (v) of this subparagraph’’; (B) in clause (iv), by striking ‘‘, subject to clause (vi) of this subparagraph’’; and (C) by striking clauses (v), (vi), and (vii) and inserting the following: ‘‘(v) RECAPTURE OF EXCESS INTEREST.— ‘‘(I) EXCESS CREDITED.—With respect to a loan on which the applicable interest rate is determined under subsection (k) or (l) of section 427A and for which the first disbursement of principal is made on or after April 1, 2006, if the applicable interest rate for any 3-month period exceeds the special allowance support level applicable to such loan under this subparagraph for such period, then an adjustment shall be made by calculating the excess interest in the amount computed under subclause (II) of this clause, and by crediting the excess interest to the Government not less often than annually. ‘‘(II) CALCULATION OF EXCESS.—The amount of any adjustment of interest on a loan to be made under this subsection for any quarter shall be equal to—

VerDate 14-DEC-2004

10:20 Jul 12, 2007

Jkt 059194

PO 00001

Frm 00157

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

APPS06

PsN: PUBL001

�