Page:United States Statutes at Large Volume 94 Part 2.djvu/142

 94 STAT. 1420 20 USC 1078.

20 USC 1077.

20 USC 1078.

PUBLIC LAW 96-374—OCT. 3, 1980

(5) Section 428(d) of the Act is amended by striking out "7 per centum per annum" and inserting in lieu thereof "the rate specified in this part". (b)(1)(A) Section 427(a)(2)(B) of the Act is amended by striking out "nine-to-twelve-month period" the first time it appears and inserting in lieu thereof "six months". (B) Such section 427(a)(2)(B) is further amended by striking out "nine months nor later than one year" and inserting in lieu thereof "six months". (2)(A) Section 428(b)(1)(E) of the Act is amended by striking out "nine-to-twelve-month period" the first time it appears and inserting in lieu thereof "six months". (B) Such section 428(b)(l)(E) is further amended by striking out "nine months nor later than one year" in both places that it appears and inserting in lieu thereof "six months". COLLECTION PRACTICES

20 USC 1080.

eredit bureau organizations, cooperative agreements.

15 USC 1681 note.

20 USC 1087.

SEC. 416. (a)(1) Section 430(b) of the Act is amended by inserting "(1)" after "(b)" and by adding at the end thereof the following new paragraph: "(2)(A) For the purpose of promoting responsible repayment of loans covered by Federal loan insurance pursuant to this part, the Secretary shall enter into cooperative agreements with credit bureau organizations providing for the exchange of information concerning student borrowers in accordance with the requirements of this paragraph. For the purpose of assisting such organizations to comply with the Fair Credit Reporting Act, such agreements may provide for timely response by the Secretary to requests from such organizations for responses to objections raised by such borrowers. Subject to the requirements of subparagraph (C), such agreements shall provide for the disclosure by the Secretary to such organizations with respect to any loan for which the Secretary has received a notice of default under subsection (a) of this section of— "(i) the date of disbursement and the amount of any such loan; "(ii) information concerning collection of any such loan, including information concerning the status of any defaulted loan on which the Secretary has made a payment pursuant to subsection (a) of this section; and "(iii) the date of cancellation of the note upon completion of repayment by the borrower of any such loan or payment by the Secretary pursuant to section 437. "(B) Such agreements may also provide for the disclosure by such organizations to the Secretary, upon receipt from the Secretary of a notice under subparagraph (A)(ii) that such a loan is in default, of information concerning the borrower's location or other information which may assist the Secretary in proceeding to collection of the defaulted amount. "(C) Agreements entered into pursuant to this paragraph shall contain such provisions as may be necessary to ensure that— "(i) no information is disclosed by the Secretary unless its accuracy and completeness have been verified, and no information stating that a loan is in default is disclosed until the Secretary has made a reasonable effort to collect the debt; "(ii) as to any information so disclosed, such organizations will be promptly notified of, and will promptly record, any change submitted by the Secretary with respect to such information, or any objections by the borrower with respect to any such informa-

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