Page:United States Statutes at Large Volume 95.djvu/480

 95 STAT. 454

PUBLIC LAW 97-35—AUG. 13, 1981 AUXILIARY PROGRAM

94 Stet. 1419. 20 USC 1077a.

SEC. 534. (a)(1) Section 427A of the Act is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following: ''(c)(1) Except as otherwise provided in this subsection, the applica9ft ^ Q- ^ftls 9 ^^® ^^*® of interest on loans made pursuant to section 428B on or after Tr 20 USC 1078-2. October 1, 1981, shall be 14 per centum per anniun on the unpaid principal balance of the loan. ''(2) If for any twelve-month period beginning on or after October 1, 1981, the Secretary, after consultation with the Secretary of the Treasury, determines that the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such twelve-month period is equal to or less than 14 per centum, the applicable rate of i n t e r s for loans made pursuant to section 428B on and after the first day of the first month beginning after the date of publication of such determination shall be 12 per centum per annum on the unpaid principal balance of the loan. "(3) If for any twelve-month period beginning on or after the date of publication of a determination under paragraph (2), the Secretary, after consultation with the Secretary of the Treasury, determines that the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such twelve-month period exceeds 14 per centum, the applicable rate of interest for loans made pursuant to section 428B on and after the first day of the first month beginning after the date of publication of that determination under this paragraph shall be 14 per centum per annum on the unpaid principal balance of the loan.. (2) Section 428B(c)(3) is amended by striking out everything after ''unpaid principal balance of the loan," and inserting in lieu thereof the following: "except as otherwise required by section 427A(c).". ?ft i^h Iftll 1 ^0 ubL io«7-i. (J) jjy striking out subparagraphs (A), (B), and (C) and inserting in lieu thereof the following: "(2)(A) Subject to subparagraph (B) and paragraph (4), the special allowance paid pursuant to this subsection on loans shall be computed (i) by determining the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such three month period, (ii) by subtracting the applicable interest rate on such loans from such average, (iii) by ad(ung 3.5 per centum to the resultant per centum, and (iv) by dividing the resultant per centum by four."; (2) by redesignating subparagraph (D) as subparagraph (B); and (3) by striking out "subparagraph (A), (B), or (C)" in subparagraph (B) (as so redesignated) and inserting in lieu thereof subparagraph (A)". (c)(1) Section 428B(a) of the Act is amended by inserting "(1)" after "(a)" and by adding at the end thereof the following new paragraph: "(2) Graduate or professional students (as defined by regulations of the Secretary) and independent undergraduate students (as defined 94 Stat. 1445. in section 482(c)(2)) shall be eligible to borrow funds under this section 20 USC 1089. ijj amounts specified in subsection (b) (treating graduate and professional students as parents for the purposes of such subsection), and unless otherwise specified in subsections (c) and (d), such loans shall have the same terms, conditions, and benefits as all other loans made under this part.". Oft ^^h lanro (2) Section 428B(b) of the Act is amended by adding at the end ^^ use 1078-2. thereof the following new paragraph:
 * ) Section 438(b)(2) of the Act is amended—

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