Page:United States Statutes at Large Volume 104 Part 2.djvu/434

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104 STAT. 1388-26 PUBLIC LAW 101-508 —NOV. 5, 1990 preclaims assistance performed, prior to the 120th day of delinquency, by the guaranty agency as of October 16, 1990"; (4) in paragraph (6)(C)(ii)— (A) by striking "reimbursement" and inserting "payment under subsection (1)"; and (B) by striking "which the guaranty agency is required or permitted to provide pursuant to paragraph (2)(A) of this subsection and subsection if)" and inserting "described in division (i)(1) of this subparagraph"; and (5) by striking the first sentence of paragraph (6)(C)(iv). (b) FIXED PAYMENTS FOR PRECLAIMS ASSISTANCE. —Section 428 of such Act is further amended by adding at the end thereof the following new subsection: "(1) PRECLAIMS ASSISTANCE AND SUPPLEMENTAL PRECLAIMS ASSIST- ANCE. — "(1) ASSISTANCE REQUIRED. —Upon receipt of a proper request from the lender, a guaranty agency having an agreement with the Secretary under subsection (c) of this section shall engage in preclaims assistance activities (as described in subsection (c)(6)(C)(i)(I)) and supplemental preclaims assistance activities (as described in subsection (c)(6)(C)) with respect to each loan covered by such agreement. "(2) PAYMENTS FOR SUPPLEMENTAL PRECLAIMS ASSISTANCE.— The Secretary shall make payments in accordance with the provisions of this paragraph to any guaranty agency that engages in supplemental preclaims assistance (as defined in subsection (c)(6)(C)) on a loan guaranteed under this part. Such payments shall be equal to $50.00 for each loan on which such assistance is performed and for which a default claim is not presented to the guaranty agency by the lender on or before the 150th day after the loan becomes 120 days delinquent.". SEC. 3003. INITIAL DISBURSEMENT AND ENDORSEMENT REQUIREMENTS. (a) AMENDMENT.— Section 428Gr(b)(l) of the Higher Education Act of 1965 (20 U.S.C. 1078-7a)Xl)) is amended to read as follows: "(1) FIRST YEAR STUDENTS. —The first installment of the proceeds of any loan made, insured, or guaranteed under this part that is made to a student borrower who is entering the first year of a program of undergraduate education, and who has not previously obtained a loan under this part, shall not (regardless of the amount of such loan or the duration of the period of enrollment) be presented by the institution to the student for endorsement until 30 days after the borrower begins a course of study, but may be delivered to the eligible institution prior to the end of that 30-day period.". 20 USC 1078-7 (b) EFFECTIVE DATE.— The amendment made by this section shall °°** ' be effective for loans made on or after the date of enactment of this Act to cover the cost of instruction for periods of enrollment beginning on or after January 1, 1991. SEC. 3004. INELIGIBILITY BASED ON HIGH DEFAULT RATES. (a) IN GENERAL.— Section 435(a) of the Higher Education Act of 20 USC 1085. 1965 (20 U.S.C. 1088(a)) is amended by adding at the end thereof the following new paragraph: "(3) INELIGIBILITY BASED ON HIGH DEFAULT RATES.— (A) An institution whose cohort default rate is equal to or greater than the threshold percentage specified in subparagraph (B) for each