Page:United States Statutes at Large Volume 94 Part 2.djvu/145

 PUBLIC LAW 96-374—OCT. 3, 1980

94 STAT. 1423

repayment provisions are consistent with the provisions of this part,". (c) Section 428(f)(3)(A) of the Act is amended by redesignating 20 USC 1078. clauses (iv) and (v) as clauses (vi) and (vii) respectively, and by inserting after clause (iii) the following new clauses: "(iv) the costs of providing interest and special allowance computation and billing services to lenders, (v) the amount of non-Federal funds expended by an insurer as incentive payments to lenders to induce them to improve or expand their program participation,". (d) Section 428 of the Act is amended by adding at the end thereof the following new subsection: "(i)(l) Any State agency or any nonprofit private institution or organization which has an agreement under subsection (b) of this section may enter into an agreement with any eligible lender (other than an eligible institution or an agency or instrumentality of the State) for the purpose of authorizing multiple disbursements of the proceeds of a loan under which the lender will pay the proceeds of such loans into an escrow account to be administered by the State agency or any nonprofit private institution or organization in accordance with the provisions of paragraph (2) of this subsection. "(2) Each State agency or each nonprofit private institution or organization entering into an agreement under paragraph (1) of this subsection is authorized to— "(A) make the disbursements in accordance with the note evidencing the loan; "(B) commingle the proceeds of all loans paid to it pursuant to the escrow agreement entered into under such paragraph (1); "(C) invest the proceeds of such loans in obligations of the Federal Government or obligations which are insured or guaranteed by the Federal Government; "(D) retain interest or other earnings on such investment; and "(E) return to the eligible lender undisbursed funds when the student ceases to carry at an eligible institution at least one-half of the normal full-time academic workload as determined by the institution.". LOAN INFORMATION PROGRAM AUTHORIZED

SEC. 418. Title IV of the Act is amended by adding after section 433 the following new section: "STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS

"SEC. 433A. Each eligible lender shall enter into an agreement with 20 USC 1083a. the Secretary under which the eligible lender will, at the time such lender makes a loan to a student borrower which is insured or guaranteed under this part, provide thorough and accurate loan information on loans insured or guaranteed under this part to the student borrower. The loan information required by this section shall include— "(1) the yearly and cumulative maximum amounts that may be borrowed by a student; "(2) the terms on which repayment will begin; "(3) the maximum number of years in which the loan must be repaid; "(4) the interest rate that will be repaid, and the minimum amount of required monthly payment;

79-194

0-81-pt. 2

10: QL3

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