Page:United States Statutes at Large Volume 122.djvu/3253

 12 2 STA T .3 23 0PUBLIC LA W 110 – 31 5— AU G .1 4, 200 8(B)inclause (i v ) ,by s tr i k in g t h e p eri od at the end and inserting ‘ ‘ and ’ ’; and ( C ) by adding at the end the f ollo w ing

‘‘(v) beginning J uly 1, 20 0 9 , an inco m e - based repayment plan that enables a borrower who has a partial financial hardship to make a lower monthly payment in accordance with section 4 9 3 C,e x cept that the plan described in this clause shall not be available to a borrower for a loan under section 42 8 B made on behalf of a dependent student or for a consolidation loan under section 428C, if the proceeds of such loan were used to discharge the liability of a loan under section 428B made on behalf of a dependent student . ’’. (2) C ONF O RMI N GA M E N D MEN T . —S ection 428(b)(1)( L )(i) (20 U .S.C. 10 7 8(b)(1)(L)(i)) is amended by striking ‘‘clause (ii) or (iii)’’ and inserting ‘‘clause (ii), (iii), or (v)’’. (f) F OR B EARAN C E I NFORMATION R E QU IREMENT S IN G UARANT YA GREEMENTS.—Section 428(c) (20 U.S.C. 1078(c)) is amended— (1) in paragraph (2)( H )(i), by striking ‘‘preclaims’’ and inserting ‘‘default aversion’’; and (2) in paragraph (3)(C)— (A) in clause (i), by striking ‘‘and’’ after the semicolon; (B) in clause (ii), by striking ‘‘and’’ after the semicolon; and (C) by inserting after clause (ii) the following: ‘‘(iii) the lender shall, at the time of granting a borrower forbearance, provide information to the bor- rower to assist the borrower in understanding the impact of capitali z ation of interest on the borrower’s loan principal and total amount of interest to be paid during the life of the loan; and ‘‘(iv) the lender shall contact the borrower not less often than once every 180 days during the period of forbearance to inform the borrower of— ‘‘(I) the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the bor- rower by the lender; ‘‘(II) the fact that interest will accrue on the loan for the period of forbearance; ‘‘(III) the amount of interest that will be capitalized, and the date on which capitalization will occur; ‘‘(I V ) the option of the borrower to pay the interest that has accrued before the interest is capitalized; and ‘‘(V) the borrower’s option to discontinue the forbearance at any time; and’’. (g) A P P L ICABILITY OF USURY LA W S.— (1) AMENDMENT.—Section 428(d) (20 U.S.C. 1078(d)) is amended by inserting ‘‘and section 207 of the Servicemembers Civil Relief Act ( 5 0 U.S.C. App. 527)’’ after ‘‘this Act’’. (2) CONFORMING AMENDMENT.—Section 438 (20 U.S.C. 1087 – 1) is amended by adding at the end the following new subsection: ‘‘(g) SPECIAL RULE.— W ith respect to any loan made under this part for which the interest rate is determined under the Deadlin e .Ef fe ct i v e date.

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