Page:United States Statutes at Large Volume 99 Part 1.djvu/556

 99 STAT. 534

42 USC 294n.

42 USC 294o.

PUBLIC LAW 99-129—OCT. 22, 1985 (i) prescribe criteria for the determination of the types of full-time educational activities which will be permitted under such subparagraph; (ii) require the school in which the borrower was enrolled as a full-time student to determine, prior to the borrower's leaving such school, whether an educational activity in which the student proposes to engage qualifies for purposes of such subparagraph and such regulations; and (B) with respect to the provisions of subparagraph (B) of such section— (i) prescribe criteria for the determination of the types of fellowship training programs and full-time educational activities which will be permitted under such subparagraph; and (ii) establish procedures for a borrower to apply to the Secretary for a determination concerning whether a particular fellowship training program or full-time educational activity will be permitted under such subparagraph. (d) Section 741(i) is amended to read as follows: "(i) Subject to regulations of the Secretary, a school may assess a charge with respect to loans made under this subpart to cover the costs of insuring against cancellation of liability under subsection (d).". (e) Section 741(j) is amended— (1) by inserting "and in accordance with this section" after "Secretary" in the first sentence; (2) by striking out "may" in such sentence and inserting in lieu thereof "shall"; and (3) by striking out the second sentence and inserting in lieu thereof the following: "No such charge may be made if the payment of such installment or the filing of such evidence is made within 60 days after the date on which such installment or filing is due. The amount of any such charge may not exceed an amount equal to 6 percent of the amount of such installment.". (f) Section 741 is amended by adding at the end thereof the following new subsection: "(m) The Secretary is authorized to attempt to collect any loan which was made under this subpart, which is in default, and which was referred to the Secretary by a school with which the Secretary has an agreement under this subpart, on behalf of that school under such terms and conditions as the Secretary may prescribe (including reimbursement from the school's student loan fund for expenses the Secretary may reasonably incur in attempting collection), but only if the school has complied with such requirements as the Secretary may specify by regulation with respect to the collection of loans under this subpart. A loan so referred shall be treated as a debt subject to section 5514 of title 5, United States Code. Amounts collected shall be deposited in the school's student loan fund. Whenever the Secretary desires the institution of a civil action regarding any such loan, the Secretary shall refer the matter to the Attorney General for appropriate action.". (g) Section 742(b) is amended by adding at the end thereof the following new paragraph: "(5) Any funds from a student loan fund established under this subpart which are returned to the Secretary in any fiscal year shall

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