Page:United States Statutes at Large Volume 82.djvu/1062

 1020

PUBLIC LAW 90-575-OCT. 16, 1968

[82 STAT.

PART B—AMENDMENTS TO INSURED STUDENT LOAN PROGRAM E X T E N S I O N OF AUTHORITY FOR P A Y M E N T S TO REDUCE S T U D E N T I N T E R E S T COSTS; E L I M I N A T I O N OF AUTHORITY TO M A K E S U C H P A Y M E N T S D U R I N G R E P A Y M E N T PERIOD 79 Stat. 1240; Ante, p. 63420 USC 1078.

Effective date.

20 USC 1079.

SEC. 111. (a) Section 428(a)(4) of the Higher Education Act of 1965 is amended by striking out "October 31, 1968" and inserting in lieu thereof "June 30, 1971, except that, in the case of a loan made or insured under a student loan or loan insurance program to enable a student who has obtained a prior loan made or insured under such program to continue his educational program, such period shall end at the close of June 30, 1975". (b)(1)(A) The portion of the first sentence of section 428(a)(1) which follows subparagraph (C) is amended by striking out ", over the period of the loan,". (B) The first sentence of section 428(a)(2) of such Act is amended by striking out ", and 3 per centum per annum of the principal amount of the loan (excluding interest which has been added to principal) thereafter". (2) The amendments made by this subsection shall apply to loans made on or after the sixtieth day after the date of enactment of this Act, except that such amendments shall not apply so as to require violation of any commitment for insurance made to an eligible lender, or of any line of credit granted to a student, prior to such sixtieth day. An application for a certificate of insurance or of comprehensive insurance coverage pursuant to section 429 of.such Act shall be issued or shall be effective on or after such sixtieth day with respect to loans made prior to such sixtieth day without regard to such amendments. E X T E N S I O N OF FEDERAL LOAN INSURANCE PROGRAM A N D OF AUTHORITY TO GUARANTEE O U T S T A N D I N G N O N - FEDERAL L Y I N S U R E D LOANS

Ante,

p. 634.

Ante,

p. 637.

SEC. 112. (a) Subsection (a) of section 424 of the Higher Education Act of 1965 is amended (1) in the first sentence by striking out "period thereafter ending October 31, 1968" and inserting in lieu thereof "fiscal year ending June 30, 1968, and each of the three succeeding fiscal years"; and (2) in the second sentence by striking out "October 31, 1968" and inserting in lieu thereof "June 30, 1975". (b) Section 428(c)(5) of such Act is amended by striking out "October 31, 1968" and inserting in lieu thereof "September 1, 1969". R E P A Y M E N T BY COMMISSIONER OF LOANS OF DECEASED OR DISABLED BORROWERS

20 USC 10711086.

S E C 113. (a) Part B of title IV of such Act is amended by inserting at the end thereof the following new section: " R E P A Y M E N T BY COMMISSIONER OF LOANS OF DECEASED OR DISABLED BORROWERS

20 USC 1078.

" S E C 437. If a student borrower who has received a loan with respect to which a portion of the interest (1) is payable by the Commissioner under section 428(a), or (2) would be payable but for the adjusted family income of the borrower, dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Commissioner), then the Commissioner shall discharge the borrower's liability on the loan by repaying the amount owed on the loan."

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