101 STAT. 342
PUBLIC LAW 100-50—JUNE 3, 1987
(d) VARIABLE INTEREST RATES ON SUPPLEMENTAL AND PLUS 20 USC 1077a. LoANS.—(1) Section 427A(c)(4) of the Act is amended— (A) in subparagraph (A), by striking out "to cover the cost of ,^ instruction for any period of enrollment beginning on or after July 1, 1987," and inserting "and disbursed on or after July 1, 1987,"; (B) in such subparagraph (A), by striking out "any calendar ., ,.,^ year" and inserting "any 12-month period beginning on July 1 and ending on June 30"; and ' (C) by striking out subparagraph (B) and inserting the following: 54 "(B) For any 12-month period beginning on July 1 and ending
- , on June 30, the rate determined under this subparagraph is
- determined on the preceding June 1 and is equal to—
"(i) the bond equivalent rate of 52-week Treasury bills auctioned at the final auction held prior to such June 1; plus "(ii) 3.25 percent.". 20 USC 1087-1. (2) Section 438(b)(2)(C) of the Act is amended by striking out "12.5 percent" and inserting "12 percent". (e) COMPLIANCE WITH LOAN LIMITS.—Section 428(a)(2)(D) of the
20 USC 1078.
Act is amended by striking out "permits the student" and inserting "certifies the eligibility of any student". (f) INSURANCE PROGRAM AGREEMENTS.—Section 428(b)(1) of the Act
is amended— (1) by striking out "first or" in subparagraph (A)(i) and inserting "first and"; (2) by inserting before the semicolon at the end of subpara^i graph (N) the following: "and except in the case of attendance at an institution outside the United States, the funds shall be '4 delivered directly to the student"; "^ " (3) by striking out "being dispensed" in subparagraph (0)(i) -' and inserting "being disbursed"; 'i (4) by striking out subparagraph (P) and inserting the k: following: "(P) requires the borrower to notify the institution concerning any change in local address during enrollment and requires the borrower and the institution at which the borrower is in attendance promptly to notify the holder of . V ! ••; ' the loan, directly or through the guaranty agency, concern' ing (i) any change of permanent address, (ii) when the '. ' student ceases to be enrolled on at least a half-time basis, and (iii) any other change in status, when such change in status affects the student's eligibility for the loan;"; and (5) by inserting in subparagraph (T) after "eligible institutions" the following: "(other than nonresidential correspondN J: • ^ ^ ence schools)". (g) CLARIFICATION OF REFERENCE.—Section 428(b)(5) of the Act is
.• .,
amended by striking out "paragraph (1)(M)" and inserting "paragraph (lKM)(i)(III)". (h)
20 USC 1092b.
GUARANTY
AGENCY
INFORMATION
TRANSFERS.—Section
428(b)(6) of the Act is amended— (1) in subparagraph (A), by striking out "Prior to the implementation of section 485B" and inserting "Until such time as the Secretary has implemented section 485B and is able to provide to guaranty agencies the information required by such section"; and
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