PUBLIC LAW 105-244—OCT. 7, 1998 112 STAT. 1721 (ii) in the matter following paragraph (I)(B), by striking "subsection (g)" and inserting "subsection (f)"; (iii) in paragraph (2)(D)(ii), by striking "subsection (f)" and inserting "subsection (e)"; and (iv) in the matter following paragraph (2)(D)(ii), by striking "subsection (g)" and inserting "subsection (0"; (B) by striking subsection (b); (C) in subsection (c)(1), by striking "three-quarters of the remainder^' and inserting "the remainder"; (D) in the matter following subsection (c)(2)(B), by striking "subsection (g)" and inserting "subsection (f)"; (E) in subsection (c)(3)— (i) in subparagraph (A), by striking "subsection (d)" and inserting "subsection (c)"; (ii) in subparagraph (C), by striking "subsection (f)" and inserting "subsection (e)"; and (iii) in the matter following subparagraph (C), by striking "subsection (g)" and inserting "subsection (f)"; (F) in subsection (j)(l)(B)(i), by striking "1985" and inserting "1999"; (G) in subsection (j)(2)— (i) in subparagraph (A), by striking "paragraph (3) of subsection (c)" and inserting "subsection (b)(3)"; and (ii) in subparagraph (B), by striking "subsection (c) of section 462" and inserting "subsection (b)"; and (H) by redesignating subsections (c) through (j) as subsections (b) through (i), respectively. (3) EFFECTIVE DATE.— The amendments made by this subsection shall apply with respect to allocations of amounts appropriated pursuant to section 461(b) for fiscal year 2000 or any succeeding fiscal year. (b) SELF-HELP NEED. — The matter preceding subparagraph (A) of section 462(c)(3) (as redesignated by subsection (a)(2)(G)) is amended by striking "the Secretary, for" and all that follows through 20 USC I087bb "years,". (c) DEFAULT PENALTIES. — Subsections (e) and (f) of section 462 (as redesignated by subsection (a)(2)(G)) are amended to read as follows: "(e) DEFAULT PENALTIES. — "(1) YEARS PRECEDING FISCAL YEAR 2000.— For any fiscal year preceding fiscal year 2000, any institution with a cohort default rate that— "(A) equals or exceeds 15 percent, shall establish a default reduction plan pursuant to regulations prescribed by the Secretary, except that such plan shall not be required with respect to an institution that has a default rate of less than 20 percent and that has less than 100 students who have loans under this part in such academic year; "(B) equals or exceeds 20 percent, but is less than 25 percent, shall have a default penalty of 0.9; "(C) equals or exceeds 25 percent, but is less than 30 percent, shall have a default penalty of 0.7; and "(D) equals or exceeds 30 percent shall have a default penalty of zero. Applicability. 20 USC 1087bb note. Regulations.
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