Page:United States Statutes at Large Volume 122.djvu/3277

 12 2 STA T .3 2 54PUBLIC LA W 11 0– 315 — AU G .14 , 200 8‘ ‘ (i)INGE NE RAL.—An in st it u ti o n wh os ec oho r t d e fa u l trateise q ual to or g reater than the threshold p ercentage specified in paragraph ( 2 )( B )(i v )inan y fiscal year shall esta b lish a default prevention tas k force to prepare a plan to— ‘‘(I) identify the factors causing the institu - tion ’ s cohort default rate to e x ceed such threshold ‘‘(II) establish m easurable ob j ectives and the steps to be taken to improve the institution’s cohort default rate; and ‘‘(III) specify actions that the institution can take to improve student loan repayment , including appropriate counseling regarding loan repayment options. ‘‘(ii) T E CH N I CAL A S SIS T ANCE.— E ach institution sub- ject to this subparagraph shall submit the plan under clause (i) to the S ecretary, who shall review the plan and offer technical assistance to the institution to pro- mote improved student loan repayment. ‘‘(B) SEC O N D CONSEC U TI V E Y EAR.— ‘‘(i) IN GENERAL.—An institution whose cohort default rate is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for two consecutive fiscal years, shall require the institution’s default prevention task force established under subparagraph (A) to review and revise the plan required under such subparagraph, and shall submit such revised plan to the Secretary. ‘‘(ii) R EVIE WB Y THE SECRETARY.—The Secretary shall review each revised plan submitted in accordance with this subparagraph, and may direct that such plan be amended to include actions, with measurable objec- tives, that the Secretary determines, based on available data and analyses of student loan defaults, will pro- mote student loan repayment.’’; and ( F ) in paragraph ( 8 )(A) (as redesignated by subpara- graph (B)) by striking ‘‘ 0 .0 375 ’’ and inserting ‘‘0.0 6 25’’. (2) E F FECTIVE DATE.—The amendment made by paragraph ( 1 )(F) shall take effect for fiscal years beginning on or after O ctober 1, 2011. (b) TY P ES OF L ENDERS.—Section 4 35(d)(1)(A)(ii) (20 U .S. C . 1085(d)(1)(A)(ii)) is amended— (1) by striking ‘‘part, or (III)’’ and inserting ‘‘part, (III)’’; and (2) by inserting before the semicolon at the end the fol- lowing

‘‘, or (I V )itisa N ational or State chartered bank, or a credit union, with assets of less than $ 1,000,000,000’’. (c) D IS Q UALIFICATION.— P aragraph (5) of section 435(d) (20 U.S.C. 1085(d)(5)) is amended to read as follows: ‘‘(5) DISQUALIFICATION FOR USE OF CERTAIN INCENTIVES.— The term ‘eligible lender’ does not include any lender that the Secretary determines, after notice and opportunity for a hearing, has— ‘‘(A) offered, directly or indirectly, points, premiums, payments (including payments for referrals and for proc- essing or finder fees), pri z es, stock or other securities, travel, entertainment expenses, tuition payment or 20USC1 0 85note.Pla n s .

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