Page:United States Statutes at Large Volume 122.djvu/3258

 12 2 STA T .3 23 5PUBLIC LA W 11 0– 315 — AU G .1 4, 200 8(I)byinsert in g‘ ‘e xc e p tint h ec a se of an inco m e - base d repayment sched ul e under section 493C’ ’, before ‘‘a repayment’’ and (II) by stri k ing ‘‘and’’ after the semicolon; (ii) in subparagraph ( B ), by striking the period at the end and inserting ‘‘; and’’; and (iii) by adding at the end the follo w ing

‘‘(C) an income-based repayment schedule under sec- tion 493C shall not be a v ailable to a consolidation loan borrower who used the proceeds of the loan to discharge the liability on a loan under section 4 28 B,ora F ederal D irect PLUS loan, made on behalf of a dependent student . ’’. (2) EF F ECTIV E DA TE. —T he amendments made by this sub- section shall take effect on J uly 1 ,2 0 09. (e) E X TE NS I O N OF CONSO L IDATION LOAN AU T H O R IT Y .—Section 428C(e) (20 U.S.C. 10 7 8 – 3(e)) is amended by striking ‘‘2012’’ and inserting ‘‘2014’’. SEC.426 . D E FAULTR EDUCT IONP RO G RA M . Section 428F (20 U.S.C. 1078– 6 ) is amended— (1) in subsection (a)— (A) in paragraph (1)(A), by adding at the end the following: ‘‘Upon the sale of the loan to an eligible lender, the guaranty agency or other holder of the loan shall re q uest any consumer reporting agency to which the guar- anty agency or holder, as applicable, reported the default of the loan, to remove the record of default from the bor- rower’s credit history.’’; and (B) by adding at the end the following: ‘‘( 5 )LI M ITATION.—A borrower may obtain the benefits avail- able under this subsection with respect to rehabilitating a loan only one time per loan.’’; and (2) by adding at the end the following: ‘‘(c) FINANCIAL AND ECONOMIC LITERACY.—Each program described in subsection (b) shall include making available financial and economic education materials for a borrower who has rehabili- tated a loan.’’. SEC. 42 7 .RE Q UIREMENTS FOR DIS B URSEMENT OF STUDENT LOANS. (a) S P ECIAL R ULE.—Section 428 G (a) (20 U.S.C. 1078–7(a)) is amended by adding at the end the following: ‘‘(4) AMENDMENT TO SPECIAL RULE.—Beginning on O ctober 1, 2011, the special rule under paragraph (3) shall be applied by substituting ‘15 percent’ for ‘10 percent’.’’. (b) RE Q UIREMENTS FOR DIS B URSEMENTS TO FIRST Y EAR STU- DENTS.—Section 428G(b) (20 U.S.C. 1078–7(b)) is amended by adding at the end the following: ‘‘(3) AMENDMENT TO COHORT DEFAULT RATE EXEMPTION.— Beginning on October 1, 2011, the exemption to the require- ments of paragraph (1) in the second sentence of such para- graph shall be applied by substituting ‘15 percent’ for ‘10 per- cent’.’’. SEC. 42 8 . UNSUBSIDI Z ED STAFFORD LOAN LIMITS. (a) AMENDMENTS.—Section 428 H (d) (20 U.S.C. 1078–8(d)) is amended— (1) in paragraph (2)— Ef f ectiv e da te . Effective date. 20USC1 0 78–3no te.

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