Page:United States Statutes at Large Volume 90 Part 2.djvu/667

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2135

"(d) There are authorized to be appropriated such sums as may be necessary for special allowances authorized by this section. "(e) In order to assure (i) that the limitation on interest payments or other conditions (or both) on loans made or insured under this part, do not impede or threaten to impede the carrying out of the purposes of this part or do not cause the return to holders of loans to be less than equitable, (ii) that incentive payments on such loans are paid promptly to eligible lenders, (iii) that appropriate consideration of relative administrative costs and money market conditions is made in setting the quarterly rate of such payments, and (iv) that participating lenders will have a better and more accurate way of assessing the rate of such payments for current and prospective quarters, there is established a Committee on the Process of Determining Student Loan Special Allowances (hereinafter in this section referred to as the 'Committee'). The Committee shall be composed of— "(1) the Commissioner of Education; "(2) the Secretary of Health, Education, and Welfare; "(3) the Secretary of Treasury; "(4) a representative of State and nonprofit private institutions and organizations participating under an agreement under section 428(b); "(5) a student financial aid administrator of an eligible institution (as defined in section 435(g)(2)); "(6) a business officer of an eligible institution (as defined in section 435(g)(2)); "(7) a representative of participating eligible lenders other than one denned in section 435(g)(1)(E); "(8) a student at an eligible institution (as defined in section 435(g)(2)); and "(9) a representative of the Student Loan Marketing Association, designated by the Board of Directors of the Association. "(f) The Commissioner shall appoint the members of the Committee described in paragraphs (4), (5), (6), (7), and (8) of subsection (e) of this section, after consultation in the case of those members appointed under each such paragraph, with nationally-recognized organizations of such persons or agencies. "(g)(1) No later than October 1, 1977, the Committee shall prepare and submit to the President of the Senate and the Speaker of the House of Representatives a report of their findings and recommendations for an improved method or methods for the determination of the quarterly rate of the special allowance paid under this Act which they believe will carry out the objectives set forth in subsection (a) of this section. "(2) The Committee shall make every effort to reach a unanimous decision with respect to the method for the determination of the quarterly rate of the special allowance established under this section. "(3) In dcvelopm^ the method for the determination of the quarterly rate of the special allowance under this section, the Committee shall consider— "(A) the experiences of students, and eligible lenders under the method prescribed in this section, and under the method in operation prior to the enactment of this section, "(B) the administrative costs of various types of eligible lenders under this part, "(C) relevant and widely available financial indicators which accurately reflect the costs of capital invested in programs under this part, or substitute financial indicators whicn equitably represent the cost of such capital,

Appropriation authorization. Committee on the Process of Determining Student Loan Special Allowances. Establishment.

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Report to Congress.

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