 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
                      Part D--Federal Perkins Loans
 
Sec. 1087dd. Terms of loans


(a) Terms and conditions

    (1) Loans from any student loan fund established pursuant to an 
agreement under section 1087cc of this title to any student by any 
institution shall, subject to such conditions, limitations, and 
requirements as the Secretary shall prescribe by regulation, be made on 
such terms and conditions as the institution may determine.
    (2)(A) Except as provided in paragraph (4), the total of loans made 
to a student in any academic year or its equivalent by an institution of 
higher education from a loan fund established pursuant to an agreement 
under this part shall not exceed--
        (i) $4,000, in the case of a student who has not successfully 
    completed a program of undergraduate education; or
        (ii) $6,000, in the case of a graduate or professional student 
    (as defined in regulations issued by the Secretary).

    (B) Except as provided in paragraph (4), the aggregate unpaid 
principal amount for all loans made to a student by institutions of 
higher education from loan funds established pursuant to agreements 
under this part may not exceed--
        (i) $40,000, in the case of any graduate or professional student 
    (as defined by regulations issued by the Secretary, and including 
    any loans from such funds made to such person before such person 
    became a graduate or professional student);
        (ii) $20,000, in the case of a student who has successfully 
    completed 2 years of a program of education leading to a bachelor's 
    degree but who has not completed the work necessary for such a 
    degree (determined under regulations issued by the Secretary), and 
    including any loans from such funds made to such person before such 
    person became such a student; and
        (iii) $8,000, in the case of any other student.

    (3) Regulations of the Secretary under paragraph (1) shall be 
designed to prevent the impairment of the capital student loan funds to 
the maximum extent practicable and with a view toward the objective of 
enabling the student to complete his course of study.
    (4) In the case of a program of study abroad that is approved for 
credit by the home institution at which a student is enrolled and that 
has reasonable costs in excess of the home institution's budget, the 
annual and aggregate loan limits for the student may exceed the amounts 
described in paragraphs (2)(A) and (2)(B) by 20 percent.

(b) Demonstration of need and eligibility required

    (1) A loan from a student loan fund assisted under this part may be 
made only to a student who demonstrates financial need in accordance 
with part E of this subchapter, who meets the requirements of section 
1091 of this title, and who provides the institution with the student's 
drivers license number, if any, at the time of application for the loan. 
A student who is in default on a loan under this part shall not be 
eligible for an additional loan under this part unless such loan meets 
one of the conditions for exclusion under section 1087bb(g)(1)(E) of 
this title.
    (2) If the institution's capital contribution under section 1087bb 
of this title is directly or indirectly based in part on the financial 
need demonstrated by students who are (A) attending the institution less 
than full time, or (B) independent students, then a reasonable portion 
of the loans made from the institution's student loan fund containing 
the contribution shall be made available to such students.

(c) Contents of loan agreement

    (1) Any agreement between an institution and a student for a loan 
from a student loan fund assisted under this part--
        (A) shall be evidenced by note or other written instrument 
    which, except as provided in paragraph (2), provides for repayment 
    of the principal amount of the loan, together with interest thereon, 
    in equal installments (or, if the borrower so requests, in graduated 
    periodic installments determined in accordance with such schedules 
    as may be approved by the Secretary) payable quarterly, bimonthly, 
    or monthly, at the option of the institution, over a period 
    beginning nine months after the date on which the student ceases to 
    carry, at an institution of higher education or a comparable 
    institution outside the United States approved for this purpose by 
    the Secretary, at least one-half the normal full-time academic 
    workload, and ending 10 years and 9 months after such date except 
    that such period may begin earlier than 9 months after such date 
    upon the request of the borrower;
        (B) shall include provision for acceleration of repayment of the 
    whole, or any part, of such loan, at the option of the borrower;
        (C)(i) may provide, at the option of the institution, in 
    accordance with regulations of the Secretary, that during the 
    repayment period of the loan, payments of principal and interest by 
    the borrower with respect to all outstanding loans made to the 
    student from a student loan fund assisted under this part shall be 
    at a rate equal to not less than $40 per month, except that the 
    institution may, subject to such regulations, permit a borrower to 
    pay less than $40 per month for a period of not more than one year 
    where necessary to avoid hardship to the borrower, but without 
    extending the 10-year maximum repayment period provided for in 
    subparagraph (A) of this paragraph; and
        (ii) may provide that the total payments by a borrower for a 
    monthly or similar payment period with respect to the aggregate of 
    all loans held by the institution may, when the amount of a monthly 
    or other similar payment is not a multiple of $5, be rounded to the 
    next highest whole dollar amount that is a multiple of $5;
        (D) shall provide that the loan shall bear interest, on the 
    unpaid balance of the loan, at the rate of 5 percent per year in the 
    case of any loan made on or after October 1, 1981, except that no 
    interest shall accrue (I) prior to the beginning date of repayment 
    determined under paragraph (2)(A)(i), or (II) during any period in 
    which repayment is suspended by reason of paragraph (2);
        (E) shall provide that the loan shall be made without security 
    and without endorsement;
        (F) shall provide that the liability to repay the loan shall be 
    canceled upon the death of the borrower, or if he becomes 
    permanently and totally disabled as determined in accordance with 
    regulations of the Secretary;
        (G) shall provide that no note or evidence of obligation may be 
    assigned by the lender, except upon the transfer of the borrower to 
    another institution participating under this part (or, if not so 
    participating, is eligible to do so and is approved by the Secretary 
    for such purpose), to such institution, and except as necessary to 
    carry out section 1087cc(a)(6) \1\ of this title;
---------------------------------------------------------------------------
    \1\ See References in Text note below.
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        (H) pursuant to regulations of the Secretary, shall provide for 
    an assessment of a charge with respect to the loan for failure of 
    the borrower to pay all or part of an installment when due, which 
    shall include the expenses reasonably incurred in attempting 
    collection of the loan, to the extent permitted by the Secretary, 
    except that no charge imposed under this subparagraph shall exceed 
    20 percent of the amount of the monthly payment of the borrower; and
        (I) shall contain a notice of the system of disclosure of 
    information concerning default on such loan to credit bureau 
    organizations under section 1087cc(c) of this title.

    (2)(A) No repayment of principal of, or interest on, any loan from a 
student loan fund assisted under this part shall be required during any 
period--
        (i) during which the borrower--
            (I) is pursuing at least a half-time course of study as 
        determined by an eligible institution; or
            (II) is pursuing a course of study pursuant to a graduate 
        fellowship program approved by the Secretary, or pursuant to a 
        rehabilitation training program for disabled individuals 
        approved by the Secretary,

    except that no borrower shall be eligible for a deferment under this 
    clause, or loan made under this part while serving in a medical 
    internship or residency program;
        (ii) not in excess of 3 years during which the borrower is 
    seeking and unable to find full-time employment;
        (iii) not in excess of 3 years for any reason which the lender 
    determines, in accordance with regulations prescribed by the 
    Secretary under section 1085(o) of this title, has caused or will 
    cause the borrower to have an economic hardship; or
        (iv) during which the borrower is engaged in service described 
    in section 1087ee(a)(2) of this title;

and provides that any such period shall not be included in determining 
the 10-year period described in subparagraph (A) of paragraph (1).
    (B) No repayment of principal of, or interest on, any loan for any 
period described in subparagraph (A) shall begin until 6 months after 
the completion of such period.
    (C) An individual with an outstanding loan balance who meets the 
eligibility criteria for a deferment described in subparagraph (A) as in 
effect on October 7, 1998, shall be eligible for deferment under this 
paragraph notwithstanding any contrary provision of the promissory note 
under which the loan or loans were made, and notwithstanding any 
amendment (or effective date provision relating to any amendment) to 
this section made prior to the date of such deferment.
    (3)(A) The Secretary is authorized, when good cause is shown, to 
extend, in accordance with regulations, the 10-year maximum repayment 
period provided for in subparagraph (A) of paragraph (1) with respect to 
individual loans.
    (B) Pursuant to uniform criteria established by the Secretary, the 
repayment period for any student borrower who during the repayment 
period is a low-income individual may be extended for a period not to 
exceed 10 years and the repayment schedule may be adjusted to reflect 
the income of that individual.
    (4) The repayment period for a loan made under this part shall begin 
on the day immediately following the expiration of the period, specified 
in paragraph (1)(A), after the student ceases to carry the required 
academic workload, unless the borrower requests and is granted a 
repayment schedule that provides for repayment to commence at an earlier 
point in time, and shall exclude any period of authorized deferment, 
forbearance, or cancellation.
    (5) The institution may elect--
        (A) to add the amount of any charge imposed under paragraph 
    (1)(H) to the principal amount of the loan as of the first day after 
    the day on which the installment was due and to notify the borrower 
    of the assessment of the charge; or
        (B) to make the amount of the charge payable to the institution 
    not later than the due date of the next installment.

    (6) Requests for deferment of repayment of loans under this part by 
students engaged in graduate or post-graduate fellowship-supported study 
(such as pursuant to a Fulbright grant) outside the United States shall 
be approved until completion of the period of the fellowship.
    (7) There shall be excluded from the 9-month period that begins on 
the date on which a student ceases to carry at least one-half the normal 
full-time academic workload (as described in paragraph (1)(A)) any 
period not to exceed 3 years during which a borrower who is a member of 
a reserve component of the Armed Forces named in section 10101 of title 
10 is called or ordered to active duty for a period of more than 30 days 
(as defined in section 101(d)(2) of such title). Such period of 
exclusion shall include the period necessary to resume enrollment at the 
borrower's next available regular enrollment period.

(d) Availability of loan fund to all eligible students

    An agreement under this part for payment of Federal capital 
contributions shall include provisions designed to make loans from the 
student loan fund established pursuant to such agreement reasonably 
available (to the extent of the available funds in such fund) to all 
eligible students in such institutions in need thereof.

(e) Forbearance

    The Secretary shall ensure that, upon written request, an 
institution of higher education shall grant a borrower forbearance of 
principal and interest or principal only, renewable at 12-month 
intervals for a period not to exceed 3 years, on such terms as are 
otherwise consistent with the regulations issued by the Secretary and 
agreed upon in writing by the parties to the loan, if--
        (1) the borrower's debt burden equals or exceeds 20 percent of 
    such borrower's gross income; or
        (2) the institution determines that the borrower should qualify 
    for forbearance for other reasons.

(f) Special repayment rule authority

    (1) Subject to such restrictions as the Secretary may prescribe to 
protect the interest of the United States, in order to encourage 
repayment of loans made under this part which are in default, the 
Secretary may, in the agreement entered into under this part, authorize 
an institution of higher education to compromise on the repayment of 
such defaulted loans in accordance with paragraph (2). The Federal share 
of the compromise repayment shall bear the same relation to the 
institution's share of such compromise repayment as the Federal capital 
contribution to the institution's loan fund under this part bears to the 
institution's capital contribution to such fund.
    (2) No compromise repayment of a defaulted loan as authorized by 
paragraph (1) may be made unless the student borrower pays--
        (A) 90 percent of the loan under this part;
        (B) the interest due on such loan; and
        (C) any collection fees due on such loan;

in a lump sum payment.

(g) Discharge

                           (1) In general

        If a student borrower who received a loan made under this part 
    on or after January 1, 1986, is unable to complete the program in 
    which such student is enrolled due to the closure of the 
    institution, then the Secretary shall discharge the borrower's 
    liability on the loan (including the interest and collection fees) 
    and shall subsequently pursue any claim available to such borrower 
    against the institution and the institution's affiliates and 
    principals, or settle the loan obligation pursuant to the financial 
    responsibility standards described in section 1099c(c) of this 
    title.

                           (2) Assignment

        A borrower whose loan has been discharged pursuant to this 
    subsection shall be deemed to have assigned to the United States the 
    right to a loan refund in an amount that does not exceed the amount 
    discharged against the institution and the institution's affiliates 
    and principals.

              (3) Eligibility for additional assistance

        The period during which a student was unable to complete a 
    course of study due to the closing of the institution shall not be 
    considered for purposes of calculating the student's period of 
    eligibility for additional assistance under this subchapter and part 
    C of subchapter I of chapter 34 of title 42.

                          (4) Special rule

        A borrower whose loan has been discharged pursuant to this 
    subsection shall not be precluded, because of that discharge, from 
    receiving additional grant, loan, or work assistance under this 
    subchapter and part C of subchapter I of chapter 34 of title 42 for 
    which the borrower would be otherwise eligible (but for the default 
    on the discharged loan). The amount discharged under this subsection 
    shall be treated as an amount canceled under section 1087ee(a) of 
    this title.

                            (5) Reporting

        The Secretary or institution, as the case may be, shall report 
    to credit bureaus with respect to loans that have been discharged 
    pursuant to this subsection.

(h) Rehabilitation of loans

                         (1) Rehabilitation

        (A) In general

            If the borrower of a loan made under this part who has 
        defaulted on the loan makes 12 ontime, consecutive, monthly 
        payments of amounts owed on the loan, as determined by the 
        institution, or by the Secretary in the case of a loan held by 
        the Secretary, the loan shall be considered rehabilitated, and 
        the institution that made that loan (or the Secretary, in the 
        case of a loan held by the Secretary) shall request that any 
        credit bureau organization or credit reporting agency to which 
        the default was reported remove the default from the borrower's 
        credit history.

        (B) Comparable conditions

            As long as the borrower continues to make scheduled 
        repayments on a loan rehabilitated under this paragraph, the 
        rehabilitated loan shall be subject to the same terms and 
        conditions, and qualify for the same benefits and privileges, as 
        other loans made under this part.

        (C) Additional assistance

            The borrower of a rehabilitated loan shall not be precluded 
        by section 1091 of this title from receiving additional grant, 
        loan, or work assistance under this subchapter and part C of 
        subchapter I of chapter 34 of title 42 (for which the borrower 
        is otherwise eligible) on the basis of defaulting on the loan 
        prior to such rehabilitation.

        (D) Limitations

            A borrower only once may obtain the benefit of this 
        paragraph with respect to rehabilitating a loan under this part.

                   (2) Restoration of eligibility

        If the borrower of a loan made under this part who has defaulted 
    on that loan makes 6 ontime, consecutive, monthly payments of 
    amounts owed on such loan, the borrower's eligibility for grant, 
    loan, or work assistance under this subchapter and part C of 
    subchapter I of chapter 34 of title 42 shall be restored to the 
    extent that the borrower is otherwise eligible. A borrower only once 
    may obtain the benefit of this paragraph with respect to restored 
    eligibility.

(i) Incentive repayment program

                           (1) In general

        Each institution of higher education may establish, with the 
    approval of the Secretary, an incentive repayment program designed 
    to reduce default and to replenish student loan funds established 
    under this part. Each such incentive repayment program may--
            (A) offer a reduction of the interest rate on a loan on 
        which the borrower has made 48 consecutive, monthly repayments, 
        but in no event may the rate be reduced by more than 1 percent;
            (B) provide for a discount on the balance owed on a loan on 
        which the borrower pays the principal and interest in full prior 
        to the end of the applicable repayment period, but in no event 
        may the discount exceed 5 percent of the unpaid principal 
        balance due on the loan at the time the early repayment is made; 
        and
            (C) include such other incentive repayment options as the 
        institution determines will carry out the objectives of this 
        subsection.

                           (2) Limitation

        No incentive repayment option under an incentive repayment 
    program authorized by this subsection may be paid for with Federal 
    funds, including any Federal funds from the student loan fund, or 
    with institutional funds from the student loan fund.

(Pub. L. 89-329, title IV, Sec. 464, as added Pub. L. 99-498, title IV, 
Sec. 405(a), Oct. 17, 1986, 100 Stat. 1448; amended Pub. L. 100-50, 
Sec. 13(i), June 3, 1987, 101 Stat. 349; Pub. L. 100-369, Sec. 7(c), 
July 18, 1988, 102 Stat. 837; Pub. L. 101-239, title II, 
Sec. 2002(a)(3), Dec. 19, 1989, 103 Stat. 2111; Pub. L. 102-325, title 
IV, Sec. 464, July 23, 1992, 106 Stat. 580; Pub. L. 103-208, 
Sec. 2(f)(9)-(11), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105-244, title 
IV, Sec. 464, Oct. 7, 1998, 112 Stat. 1725.)

                       References in Text

    Section 1087cc(a) of this title, referred to in subsec. (c)(1)(G), 
was amended by Pub. L. 105-244, title IV, Sec. 463(a)(3), Oct. 7, 1998, 
112 Stat. 1724, which redesignated pars. (6) and (7) as (5) and (6), 
respectively.


                            Prior Provisions

    A prior section 1087dd, Pub. L. 89-329, title IV, Sec. 464, as added 
Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat. 275; 
amended Pub. L. 94-482, title I, Sec. 130(d)-(g)(1), Oct. 12, 1976, 90 
Stat. 2147; Pub. L. 95-43, Sec. 1(a)(39), June 15, 1977, 91 Stat. 217; 
Pub. L. 96-374, title IV, Secs. 442(b)(5), 443, 444, 445(b)(2), 446, 
448(c), title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1440-1443, 
1503; Pub. L. 97-35, title V, Sec. 539, Aug. 13, 1981, 95 Stat. 458; 
Pub. L. 99-272, title XVI, Sec. 16028, Apr. 7, 1986, 100 Stat. 353, 
related to terms and conditions of loans, prior to the general revision 
of this part by Pub. L. 99-498.


                               Amendments

    1998--Subsec. (a)(2). Pub. L. 105-244, Sec. 464(a), amended par. (2) 
generally. Prior to amendment, par. (2) related to limitations on the 
total of loans that could be made to a student by an institution of 
higher education from a loan fund established pursuant to an agreement 
under this part.
    Subsec. (b)(1). Pub. L. 105-244, Sec. 464(b)(1), inserted at end ``A 
student who is in default on a loan under this part shall not be 
eligible for an additional loan under this part unless such loan meets 
one of the conditions for exclusion under section 1087bb(g)(1)(E) of 
this title.''
    Subsec. (b)(2). Pub. L. 105-244, Sec. 464(b)(2), amended par. (2) 
generally. Prior to amendment, par. (2) read as follows: ``If the 
institution's capital contribution under section 1087bb of this title is 
directly or indirectly based in part on the financial need demonstrated 
by students who are (A) attending the institution less than full time, 
or (B) independent students, and if the total financial need of all such 
less than full-time and independent students at the institution exceeds 
5 percent of the total financial need of all students at such 
institution, then at least 5 percent of such loans shall be made 
available to such less than full-time and independent students.''
    Subsec. (c)(1)(D). Pub. L. 105-244, Sec. 464(c)(1), struck out ``(i) 
3 percent per year, (ii) 4 percent per year in the case of any loan made 
on or after July 1, 1981, or (iii)'' after ``at the rate of'' and 
substituted ``paragraph (2)(A)(i)'' for ``subparagraph (A)(i)''.
    Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 464(c)(2), substituted 
``subparagraph (A) of paragraph (1)'' for ``subparagraph (B)'' in 
concluding provisions.
    Subsec. (c)(2)(C). Pub. L. 105-244, Sec. 464(c)(3), added subpar. 
(C).
    Subsec. (c)(7). Pub. L. 105-244, Sec. 464(c)(4), added par. (7).
    Subsecs. (g) to (i). Pub. L. 105-244, Sec. 464(d), added subsecs. 
(g) to (i).
    1993--Subsec. (c)(2)(B). Pub. L. 103-208, Sec. 2(f)(9), substituted 
``repayment of'' for ``repayment or''.
    Subsec. (c)(6). Pub. L. 103-208, Sec. 2(f)(10), substituted 
``Fulbright'' for ``Fullbright''.
    Subsec. (e). Pub. L. 103-208, Sec. 2(f)(11), substituted 
``principal'' for ``principle'' before ``only''.
    1992--Subsec. (a)(2). Pub. L. 102-325, Sec. 464(a), amended par. (2) 
generally. Prior to amendment, par. (2) read as follows: ``The aggregate 
of the loans for all years made by institutions of higher education from 
loan funds established pursuant to agreements under this part may not 
exceed--
        ``(A) $18,000 in the case of any graduate or professional 
    student (as defined by regulations of the Secretary, and including 
    any loans from such funds made to such person before he became a 
    graduate or professional student);
        ``(B) $9,000 in the case of a student who has successfully 
    completed 2 years of a program of education leading to a bachelor's 
    degree, but who has not completed the work necessary for such a 
    degree (determined under regulations of the Secretary, and including 
    any loans from such funds made to such person before he became such 
    a student); and
        ``(C) $4,500 in the case of any other student.''
    Subsec. (a)(4). Pub. L. 102-325, Sec. 464(b), added par. (4).
    Subsec. (b)(1). Pub. L. 102-325, Sec. 464(c)(1), substituted ``this 
subchapter, who meets the requirements of section 1091 of this title, 
and who provides the institution with the student's drivers license 
number, if any, at the time of application for the loan'' for ``this 
subchapter and who meets the requirements of section 1091 of this 
title''.
    Subsec. (b)(2). Pub. L. 102-325, Sec. 464(c)(2), amended par. (2) 
generally. Prior to amendment, par. (2) read as follows: ``If the 
institution's Federal capital contribution under section 1087bb of this 
title is directly or indirectly based in part on the financial need 
demonstrated by students attending the institution less than full time, 
a reasonable proportion of the loans under this part shall be made 
available to such students.''
    Subsec. (c)(1)(C)(i). Pub. L. 102-325, Sec. 464(d), substituted 
``$40'' for ``$30'' in two places.
    Subsec. (c)(1)(E). Pub. L. 102-325, Sec. 464(e), struck out ``unless 
the borrower is a minor and the note or other evidence of obligation 
executed by him would not, under applicable law, create a binding 
obligation,'' before ``shall provide''.
    Subsec. (c)(2)(A). Pub. L. 102-325, Sec. 464(f), amended subpar. (A) 
generally, revising and restating as cls. (i) to (iv) provisions 
formerly contained in cls. (i) to (ix).
    Subsec. (c)(2)(B), (C). Pub. L. 102-325, Sec. 464(g)(1), added 
subpar. (B) and struck out former subpars. (B) and (C) which read as 
follows:
    ``(B) Any period during which repayment is deferred under 
subparagraph (A) shall not be included in computing the 10-year maximum 
period provided for in subparagraph (A) of paragraph (1).
    ``(C) No repayment of principal of, or interest on, any loan for any 
period of study, service, or disability described in subparagraph (A) or 
any combination thereof shall begin until 6 months after the completion 
of such period of study, service, disability, or combination thereof.''
    Subsec. (c)(4) to (6). Pub. L. 102-325, Sec. 464(g)(2)-(4), added 
par. (4), redesignated former par. (4) as (5), and added par. (6).
    Subsecs. (e), (f). Pub. L. 102-325, Sec. 464(h), added subsecs. (e) 
and (f).
    1989--Subsec. (c)(2)(A)(i). Pub. L. 101-239 inserted before 
semicolon at end ``, except that no borrower shall be eligible for a 
deferment under this clause, or a loan made under this part (other than 
a loan made under section 1078-2 or 1078-3 of this title), while serving 
in a medical internship or residency program''.
    1988--Subsec. (c)(2)(A)(v). Pub. L. 100-369 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for 
purposes of codification was translated as ``title 26'' thus requiring 
no change in text.
    1987--Subsec. (c)(2)(A)(vi). Pub. L. 100-50 inserted ``or serving in 
an internship or residency program leading to a degree or certificate 
awarded by an institution of higher education, a hospital, or a health 
care facility that offers postgraduate training'' before semicolon at 
end.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-208 effective as if included in the Higher 
Education Amendments of 1992, Pub. L. 102-325, except as otherwise 
provided, see section 5(a) of Pub. L. 103-208, set out as a note under 
section 1051 of this title.


                    Effective Date of 1992 Amendment

    Section 468 of Pub. L. 102-325, as amended by Pub. L. 102-394, title 
III, Sec. 307(a), Oct. 6, 1992, 106 Stat. 1820, provided that: ``The 
changes made in part E of title IV of the Act [20 U.S.C. 1087aa et seq.] 
by the amendments made by this part [part E (Secs. 461-468) of title IV 
of Pub. L. 102-325, enacting section 1087ii of this title and amending 
sections 1087aa to 1087gg of this title] shall take effect on the date 
of enactment of this Act [July 23, 1992], except that--
        ``(1) the changes in section 463(a)(2)(B) [20 U.S.C. 
    1087cc(a)(2)(B)], relating to the matching of Federal capital 
    contributions, shall apply to funds provided for such program for 
    the award years beginning on or after July 1, 1993;
        ``(2) the changes made in section 464(c)(1)(C) [20 U.S.C. 
    1087dd(c)(1)(C)], relating to minimum monthly payments shall apply 
    with respect to loans for which the first disbursement is made on or 
    after October 1, 1992, to an individual who, on the date the loan is 
    made, has no outstanding balance of principal or interest owing on 
    any loan made under part E of title IV of the Act;
        ``(3) the changes made in section 464(c)(2)(A), relating to 
    deferments, shall apply with respect to loans for which the first 
    disbursement is made on or after July 1, 1993;
        ``(4) the changes made in section 467 [20 U.S.C. 1087gg], 
    relating to the creation of a Perkins Loan Revolving Fund, shall 
    take effect on September 15, 1997; and
        ``(5) the changes in section 464(a)(2)(A), (B) and (C) shall not 
    apply to any loan made for the award year beginning July 1, 1992 
    provided that the loan does not result in a violation of section 
    464(a)(2)(A), (B) and (C) as in effect prior to such date of 
    enactment.''
    [Pub. L. 102-394, title III, Sec. 307(b), Oct. 6, 1992, 106 Stat. 
1820, provided that: ``The amendments made by subsection (a) [amending 
section 468 of Pub. L. 102-325, set out above] shall take effect as if 
enacted on July 23, 1992.'']


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 applicable to any loan made, insured, 
or guaranteed under this part or part B of this subchapter, including a 
loan made before Dec. 19, 1989, and amendment effective Jan. 1, 1990, 
but inapplicable with respect to any portion of a period of deferment 
granted to a borrower under section 1077(a)(2)(C)(i), 1078(b)(1)(M)(i), 
or 1087dd(c)(2)(A)(i) of this title for service in a medical internship 
or residency program completed prior to Dec. 19, 1989, see section 
2002(a)(4) of Pub. L. 101-239, set out as a note under section 1077 of 
this title.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-50 effective as if enacted as part of the 
Higher Education Amendments of 1986, Pub. L. 99-498, see section 27 of 
Pub. L. 100-50, set out as a note under section 1001 of this title.


                             Effective Date

    Section effective Oct. 17, 1986, except as otherwise provided, see 
section 2 of Pub. L. 99-498, set out as a note under section 1001 of 
this title.
    Section 405(b) of Pub. L. 99-498, as amended by Pub. L. 100-50, 
Sec. 22(d), June 3, 1987, 101 Stat. 361, provided that:
    ``(1) Section 462 of the Act [20 U.S.C. 1087bb] shall apply with 
respect to academic year 1988-1989 and succeeding academic years.
    ``(2) The changes made in sections 464(c)(1)(A), 464(c)(2), and 
465(a)(2)(E) of the Act [20 U.S.C. 1087dd(c)(1)(A), (2), 
1087ee(a)(2)(E)] shall apply only to loans made to cover the costs of 
instruction for periods of enrollment beginning on or after July 1, 
1987, to individuals who are new borrowers on that date.
    ``(3) Section 463(a)(9) and section 463A of the Act [20 U.S.C. 
1087cc(a)(9), 1087cc-1] as amended by this section shall apply only to 
loans made for periods of enrollment beginning on or after July 1, 1987.
    ``(4) For the purpose of this subsection, the term `new borrower' 
means, with respect to any date, an individual who on that date has no 
outstanding balance of principal or interest owing on any loan made 
under part E of title IV of the Act [this part].''

                  Section Referred to in Other Sections

    This section is referred to in sections 1087cc, 1092 of this title.
