Page:United States Statutes at Large Volume 122.djvu/3276

 12 2 STA T .3 2 5 3 PUBLIC LA W 11 0– 315 — AU G .1 4, 200 8‘ ‘ (2)agu a r a nty ag e n c y f r omp ro vid ing program s or mate - ria l s similar to t h e programs or materials descri b ed in sub- section (a) to an institution of higher education that provides loans e x clusively through part D; or ‘‘( 3 ) a lender or loan servicer from providing outreach or financial aid literacy information in accordance w ith subsection (a) .’ ’. SEC.436 . D E FIN I T I O NSOFE L I G I B LE INSTIT U TION A ND ELIGIBLE LENDE R . (a) PARTIC I P ATI ONR AT EI N D E X . — ( 1 ) AM ENDMENT S .— S ection 4 3 5 (a) (2 0U .S. C . 10 8 5(a)) is amended— (A) in paragraph (2)— (i) in subparagraph (A)(ii) , by stri k ing ‘‘paragraph (4)’’ and inserting ‘‘paragraph (5)’’; and (ii) in subparagraph ( B )— (I) by striking ‘‘and’’ at the end of clause (ii); and (II) by striking clause (iii) and inserting the following

‘‘(iii) 25 percent for fiscal year 1 9 94 through fiscal year 2011; and ‘‘(iv) 30 percent for fiscal year 2012 and any suc- ceeding fiscal year.’’; (B) by redesignating paragraph ( 6 ) as paragraph (8), and redesignating paragraphs (3) through (5) as para- graphs (4) through (6), respectively; (C) by inserting after paragraph (2) the following new paragraph: ‘‘(3) APPEA L S F OR RE GU LATOR Y RELIEF.—An institution whose cohort default rate, calculated in accordance with sub- section (m), is e q ual to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for any two consecutive fiscal years may, not later than 30 days after the date the institution receives notification from the Secretary, file an appeal dem- onstrating exceptional mitigating circumstances, as defined in paragraph (5). T he Secretary shall issue a decision on any such appeal not later than 45 days after the date of submission of the appeal. If the Secretary determines that the institution demonstrates exceptional mitigating circumstances, the Sec- retary may not sub j ect the institution to provisional certification based solely on the institution’s cohort default rate.’’; (D) in paragraph (5)(A) (as redesignated by subpara- graph (B)), by striking ‘‘ F or purposes of paragraph (2)(A)(ii)’’ and all that follows through ‘‘following criteria:’’ and inserting ‘‘For purposes of this subsection, an institu- tion of higher education shall be treated as having excep- tional mitigating circumstances that make application of paragraph (2) inequitable, and that provide for regulatory relief under paragraph (3), if such institution, in the opinion of an independent auditor, meets the following criteria:’’; ( E ) by inserting after paragraph (6) (as redesignated by subparagraph (B)) the following: ‘‘( 7 ) DEFAULT PRE V ENTION AND ASSESSMENT OF ELIGI B ILITY BASED ON H IGH DEFAULT RATES.— ‘‘(A) FIRST YEAR.— Deadlin e s.Not i f i c ation.

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