Page:United States Statutes at Large Volume 94 Part 2.djvu/140

 94 STAT. 1418

PUBLIC LAW 96-374—OCT. 3, 1980

unable to secure employment by reason of the care required by a spouse who is so disabled, or (viii)". Ante, p. 1417. (c) Section 427(a)(2)(C) of the Act is amended— (1) by striking out "and any such period" and inserting in lieu thereof "that any such period", and (2) by inserting before the comma at the end thereof a comma and the following: "and that no repayment of principal of any loan for any period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof. Ante, p. 1417. (d) Section 428(b)(l)(M) is amended by inserting before the semicolon at the end thereof a comma and the following: "and that no repayment of principal of any loan for any period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof. 20 USC 1085. (e) Section 435 of the Act is amended by adding at the end thereof the following new subsection: "Temporarily "(j) The term 'temporarily totally disabled' when used with respect totally disabled." ^Q g borrower means a borrower who, by reason of injury or illness, ^ cannot be expected to be able to attend an eligible institution or to be gainfully employed during a reasonable period of recovery from such injury or illness not to exceed three years. Such term when used with respect to the spouse of a borrower means a spouse who, by reason of injury or illness, cannot be expected to be gainfully employed during a reasonable period of recovery from such injury or illness not to exceed three years and who during such period required continuous nursing or other similar services.". STATE AGENCIES AS LENDERS OF LAST RESORT

20 USC 1078. Post, p. 1430. 20 USC 1085.

SEC. 414. Section 428 of the Act is amended by adding at the end thereof the following new subsection: "(h)(1) From sums advanced by the Association pursuant to section 439(p), each State agency and nonprofit private institution or organization with which the Secretary has an agreement under subsection (b) of this section or an eligible lender in a State described in section 435(g)(1)(D) or (F) of the Act is authorized to make loans directly to students otherwise unable to obtain loans under this part. "(2)(A) Each State agency or nonprofit private institution or organization which has an agreement under subsection (b) of this section or an eligible lender in a State described in section 435(g)(l)(D) or (F) and which has an application approved under section 439(p)(2) may receive advances under section 439(p) for each fiscal year in an amount necessary to meet the demand for loans under this section. The amount such agency, institution, organization, or lender is eligible to receive may not exceed 25 per centum of the average of the loans guaranteed by that agency, institution, organization, or lender for the three years preceding the fiscal year for which the determination is made. Whenever the determination required by the preceding sentence cannot be made because the agency, institution, organization, or lender does not have three years previous experience, the amount such agency, institution, organization, or lender is eligible to receive may not exceed 25 per centum of the loans guaranteed under a program of a State of comparable size. "(B) Each State agency or nonprofit private institution or organization which has an agreement under subsection (b) of this section and

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