Page:United States Statutes at Large Volume 90 Part 2.djvu/798

 90 STAT. 2266

PUBLIC LAW 94-4«4—OCT. 12, 1976 ance with regulations of the Secretary), the Secretary shall discharge the borrower's liability on the loan by repaying the amount owed on the loan from the fund established under section 734. ii^

ELIGIBILITY OF INSTITUTIONS

Regulations. 42 USC 294/.

"SEC. 739. (a) Notwithstanding any other provision of this subpart, the Secretary 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 received a loan insured under this subpart; "(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 subpart; and "(3) the limitation, suspension, or termination of the eligibility under this subpart of any otherwise eligible institution, whenever the Secretary 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 subpart. "(b) The Secretary shall by regulation— "(1) require an eligible institution to record, and make available to a lender and to the Secretary upon request, the name, address, postgraduate destination, and other reasonable identifying information for each student of such institution who has a loan insured under this subpart; and "(2) in the case of an eligible institution which is a school of medicine, osteopathy, or dentistry, require such institution to establish procedures to insure that no more than 50 percent of the students in each class in the institution are authorized to have loans insured under this subpart.". STUDENT LOAN

42 USC 294, 294m.

20 use401 note.

SEC. 402. Section 740 is amended— (1) by striking out "of Health, Education, and Welfare" in subsection (a); (2) by striking out ", except as provided in section 746," in paragraphs (2) and (3) of subsection (b); (3) by striking out ", and that while the agreement remains in effect" and all that follows through "National Defense Education Act of 1958; and" in subsection (b)(4) and inserting in lieu thereof a semicolon; and (4) by redesi^ating paragraph (5) of subsection (b) as paragraph (6), and inserting after paragraph (4) of such subsection the following new paragraph: " (5) provide that the school shall advise, in writing, each applicant for a loan from the student loan fund of the provisions of section 741 under which outstanding loans from the student loan fund may be paid (in whole or in part) by the Secretary; and". LOAN

42 USC 294a, 294n.

AGREEMENTS

PROVISIONS

SEC. 403. (a) Subsection (a) of section 741 is amended to read as follows:

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