Page:United States Statutes at Large Volume 86.djvu/304

 262

,

79 Stat. 1236. 20 USC 1071. Ante,

p. 261.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

and insured by the Commissioner under part B of title IV of the Higher Education Act of 1965, or by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428(b) of such part. INSURANCE LIABILITY

20 USC lo75:

^^20 USC 1080, 20 USC 1077. 20 USC 1080.

SEC. 132B. (a) Section 425(b) of the Higher Education Act of 1965 is amended to read as follows: "(b) The insurance liability on any loan insured by the Commissioner under this part shall be 100 per centum of the unpaid balance of the principal amount of the loan plus interest. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 430 Qj^. 437 ^f ^j^jg ^ ^ ^ „ ^ (b) Section 427(a)(2)(D) of such Act is amended by striking^ out the following: " (but without thereby increasing the insurance liability under this part) ". ^Q-^ -j^jjg ]g^g^ sentence of section 430(a) of such Act is amended by striking out "of the loan (other than interest added to principal)" and inserting in lieu thereof the following: "and interest". AMENDMENTS

20 USC 1078.

Ante,

p. 261.

TO I N T E R E S T

SUBSIDY

PROVISIONS

SEC. 132C. (a) Section 428(a)(1) of the Higher Education Act of 2965 is amended to read as follows: "(1) Each student who has received a loan for study at an eligible institution—• " (A) which is insured by the Commissioner under this part; " (B) which was made under a State student loan program (meeting criteria prescribed by the Commissioner), and which was contracted for, and paid to the student, within the period specified by paragraph (4); or " (C) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (4), and which— "(i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than sixty days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or "(ii) in the case of a loan insured after June 30, 1967, is insured under a program covered by an agreement made pursuant to subsection (b), shall be entitled to have paid on his behalf and for his account to the holder of the loan a portion of the interest on such loan (in accordance with paragraph (2) of this subsection) only if at the time of execution of the note or written agreement evidencing such loan his adjusted family income is— " (I) less than $15,000 and the eligible institution at which he has been accepted for enrollment or, in the case of a student who is attending such an institution, at which he is in good standing (as determined by such institution)— " (a) has determined the amount of need for such loan by subtracting from the estimated cost of his attendance at such

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