Page:United States Statutes at Large Volume 86.djvu/306

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PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

79 Stat. 1247; 52 Stat. 1024. 20 USC 1084.

regulations of the Commissioner), then the Commissioner shall discharge the borrower's liability on the loan by repaying the amount owed on the loan.". (b) Paragraph (1) of section 428(b) is amended (1) by striking out "and" at the end of clause (J) thereof, (2) by striking out the period at the end of clause (K) and inserting "•; and" in lieu thereof, and (3) by adding at the end of such paragraph the following new clause: " (L) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid during any period (i) during'which the borrower is pursuing a full-time course of study at an eligible institution, (ii) not in excess of three years during which the borrower is a member of the Armed Forces of the United States, (iii) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, or (iv) not in excess of three years during which the borrower is in service as a full-time volunteer under title VIII of the Economic Opportunity Act of 1964." (c) Section 428(e) of such Act is repealed. (d) Paragraph (1) of subsection (c) of such section 428 is amended by striking out "adjusted family income of the borrower" and inserting in lieu thereof "the borrower's lack of need". (e) Section 434 of such Act is amended by striking out "up to 15 per centum of their assets,".

79 Stat. 1236; !2 Stat. 1020. 20 USC 1071.

ELiGiBiLrrY or INSTITUTIONS SEC. 132E. (a) Part B of title IV of the Higher Education Act of 1965 is amended by adding at the end thereof the following new section:

79 Stat. 1242; 82 Stat. 1027. 20 USC 1078.

81 Stat. 7 2 2. 42 USC 2 9 9 1. Repeal. 82 Stat. 1025. 82 Stat. 6 3 6. 20 USC 1078.

"ELIGIBILITY OF INSTITUTIONS Regulations.

Audit.

Ante, p p. 2 6 1, 263; Supra.

List of s t a t e a g e n c i e s, publication.

Effective date.

"SEC. 438. (a) Notwithstanding any other provision of this part, the Commissioner is authorized to prescribe such regulations as may be necessary to provide for— "(1) a fiscal audit of an eligible institution with regard to any funds obtained from a student who has receiA'ed a loan insured under this part, or insured by a State or nonprofit private institution or organization wnth which the Commissioner has an agreement under section 428(b); "(2) the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid with respect to funds obtained from a student who has received a loan insured under this part, or insured by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428(b); "(3) the limitation, suspension, or termination of the eligibility under this part of any otherwise eligible institution, whenever the Commissioner has determined, after notice and affording an opportunity for hearing, that such institution has violated or failed to carry out any regulation prescribed under this part. "(b) The Commissioner shall publish a list of State agencies which he determines to be reliable authority as to the quality of public postsecondary vocational education in their respective States foi- the purpose of determining eligibility for all Federal student assistance programs.". (b) The amendment made by subsection (a) shall be effective on and after the sixtieth day following the enactment of this Act.

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