Page:United States Statutes at Large Volume 120.djvu/194

 PUBLIC LAW 109–171—FEB. 8, 2006

120 STAT. 163

of principal is made on or after July 1, 2008, and before July 1, 2009; ‘‘(iv) by substituting ‘0.5 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010; and ‘‘(v) by substituting ‘0.0 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.’’. (2) DIRECT LOAN PROGRAM.—Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended— (A) by striking ‘‘(c) LOAN FEE.—’’ and inserting the following: ‘‘(c) LOAN FEE.— ‘‘(1) IN GENERAL.—’’; and (B) by adding at the end the following: ‘‘(2) SUBSEQUENT REDUCTION.—Paragraph (1) shall be applied to loans made under this part, other than Federal Direct Consolidation loans and Federal Direct PLUS loans— ‘‘(A) by substituting ‘3.0 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after the date of enactment of the Higher Education Reconciliation Act of 2005, and before July 1, 2007; ‘‘(B) by substituting ‘2.5 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2007, and before July 1, 2008; ‘‘(C) by substituting ‘2.0 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2008, and before July 1, 2009; ‘‘(D) by substituting ‘1.5 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010; and ‘‘(E) by substituting ‘1.0 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.’’. (3) CONFORMING AMENDMENT.—Section 455(b)(8)(A) (20 U.S.C. 1087e(b)(8)(A)) is amended by inserting ‘‘or origination fee’’ after ‘‘reductions in the interest rate’’.

Applicability.

SEC. 8009. CONSOLIDATION LOAN CHANGES.

(a) CONSOLIDATION BETWEEN PROGRAMS.—Section 428C (20 U.S.C. 1078–3) is amended— (1) in subsection (a)(3)(B)(i)— (A) by inserting ‘‘or under section 455(g)’’ after ‘‘under this section’’ both places it appears; (B) by inserting ‘‘under both sections’’ after ‘‘terminates’’; (C) by striking ‘‘and’’ at the end of subclause (III); (D) by striking the period at the end of subclause (IV) and inserting ‘‘; and’’; and (E) by adding at the end the following new subclause: ‘‘(V) an individual may obtain a subsequent consolidation loan under section 455(g) only for the purposes of

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