Page:United States Statutes at Large Volume 90 Part 2.djvu/640

 90 STAT. 2108

UMf,)

PUBLIC LAW 94-482—OCT. 12, 1976 "(b) No maximum rate of interest prescribed and defined by the Secretary for the purposes of clause (2)(D) of subsection (a) may exceed 7 per centum per annum on the unpaid principal balance of the loan. "(c) The total of the payments by a borrower during any year of any repayment period with respect to the aggregate amount of all loans to that borrower which are insured under this part shall not unless the borrower and the lender otherwise agree, be less than $360 or the balance of all of such loans (together with interest thereon), whichever amount is less, except that in the case of a husband and wife, both of whom have such loans outstanding, the total of the combined payments for such a couple during any year shall not be less than $360 or the balance of all such loans, whichever is less. uFEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS

20 USC 1078.

Interest payment,

"SEC. 428. (a)(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 (5); 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 (5), 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 under circumstances described in paragraph (2). "(2)(A) Each student qualifying for a portion of an interest payment under paragraph (1) shall— "(i) have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which he is in attendance in good standing (as determined by such institution), which— " (I) sets forth such student's estimated costs of attendance and " ( II) sets forth such student's estimated financial assistance; and "(ii) meet the requirements of subparagraph (B). "(B) For the purposes of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) if such student's adjusted family income at the time of execution of the note or written agreement evidencing such loan— " (i) is less than $25,000; or

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