Page:United States Statutes at Large Volume 95.djvu/944

 95 STAT. 918

PUBLIC LAW 97-35—AUG. 13, 1981 borrower shall not at any time exceed $80,000 in the case of a borrower who is or was a student enrolled in a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, or podiatry, and $50,000 in the case of a borrower who is or was a student enrolled in a school of pharmacy, public health, or chiropractic, or a graduate program in health administration or clinical psychology. The annual insurable limit per student shall not be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit.". ELIGIBILITY OF STUDENT BORROWERS AND TERMS OF FEDERALLY INSURED LOANS

94 Stat. 3192.

SEC. 2728. (a)(1) Section 731(a)(1)(A) (42 U.S.C. 294d(a)(l)(A)) is amended by striking out clause (iii) and redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively. (2) Clause (iii) of such section (as redesignated by paragraph (1) of this subsection) is amended by striking out "and before "other reasonable educational expenses" and by inserting "and reasonable living expenses," after "and laboratory expenses,". (b) Section 731(a)(2) is amended— (1) by striking out "15 years" in subparagraph (B) and inserting in lieu thereof "25 years; (2) by striking out "23 years" in such subparagraph and inserting in lieu thereof "33 years"; (3) by striking out "installments of principal need not be paid, but interest shall accrue and be paid in subparagraph (C) and inserting in lieu thereof "installments of principal and interest need not be paid, but interest shall accrue"; (4) by striking out "three years" in subparagraph (C)(ii) and inserting in lieu thereof "four years"; (5) by striking out "the 15-year period or the 23-year period" in subparagraph (C) and inserting in lieu thereof "the 25-year period or the 33-year period"; (6) by inserting "except as provided in subparagraph (C)" after "period of the loan" in subparagraph (D); (7) by striking out "otherwise payable (i) before the beginning of the repayment period, (ii) during any period described in subparagraph (C), or (iii) during any other period of forbearance of payment of principal," in subparagraph (D); (8) by inserting "for the purposes of calculating a repayment schedule" before the semicolon in subparagraph (D); (9) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and (10) by inserting after subparagraph (D) the following: (E) offers, in accordance with criteria prescribed by regulation by the Secretary, a schedule for repayment of principal and interest under which payment of a portion of the principal and interest otherwise payable at the begin' ^^ ning of the repayment period (as defined in such regulations) is deferred until a later time in the period;". (c) Section 731(c) is amended by inserting before the period a comma and "except as provided in section 731(a)(2)(C)". CERTIFICATE OF FEDERAL LOAN INSURANCE

SEC. 2729. Section 732 (42 U.S.C. 294e) is amended by adding at the end thereof the following new subsection:

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