Page:United States Statutes at Large Volume 88 Part 2.djvu/274

 1590

Loan limita tion.

17^10.^^^ ^^^^' Eligibility.

20 USC 1071.

Restrictions.

Defaulted loan.

Death or dis-

duc'harge^''' '^^

PUBLIC LAW 93-508-DEC. 3, 1974

[88 STAT.

charges for tuition, fees, room and board (or expenses related to reasonable commuting), books, arid an allowance for such other expenses as the Administrator determines by regulation to be reasonably, related to attendance at the institution at which the veteran or person is enrolled. "(3) The aggregate of the amounts any veteran or person may borrow under this subchapter may not exceed $270 multiplied by the number of months such veteran or person is entitled to receive educational assistance under section 1661 or subchapter II of chapter 35, respectively, of this title, but not in excess of $600 in any one regular academic year. "^c) An eligible veteran or person shall be entitled to a loan under this subchapter if such veteran or pereon— "(1) is in attendance at an educational institution on at least a half-time basis and (A) is enrolled in a course leading to a standard college degree, or (B) is enrolled in a course, the completion of which requires six months or longer, leading to an identified and predetermined professional or vocational objective; "(2) has sought and is unable to obtain a loan, in the full amount needed by such veteran or person, as determined under subsection (b) of this section, under a student loan program insured pursuant to the provisions of part B of title IV of the Higher Education Act of 1965, as amended, or any successor authority; and "(3) enters into an agreement with the Administrator meeting the requirements of subsection (d) of this section. No loan shall be made under this subchapter to an eligible veteran or person pursuing a program of correspondence, flight, apprentice or other on-job, or P R E P training. " (d) Any agreement between the Administrator and a veteran or person under this subchapter— " (1) shall include a note or other written obligation which provides for repayment to the Administrator of the principal amount of, and payment of interest on, the loan in installments over a period beginning nine months after the date on which the borrower ceases to be at least a half-time student and ending ten years and nine months after such date; "(2) shall include provision for acceleration of repayment of all or any part of the loan, without penalty, at the option of the borrower; "(3) shall provide that the loan shall bear interest, on the unpaid balance of the loan, at a rate prescribed by the Administrator, with the concurrence of the Secretary of the Treasury, but at a rate not less than a rate determined by the Secretary, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the maturity of loans made under this subchapter, except that no interest shall accrue prior to the beginning date of repayment; and " (4) shall provide that the loan shall be made without security and without endorsement, " (e)(1) Except as provided in paragraph (2) of this subsection, whenever the Administrator determines that a default has occurred on any loan made under this subchapter, he shall declare an overpayment, and such overpayment shall be recovered from the veteran or person concerned in the same manner as any other debt due the United States. " (2) If a veteran or person who has received a loan under this section ^i^s or bccomcs permanently and totally disabled, then the Administrator shall discharge the veteran's or person's liability on such loan by repaying the amount owed on such loan.

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