Page:United States Statutes at Large Volume 104 Part 2.djvu/435

This page needs to be proofread.


PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-27 of the three most recent fiscal years for which data are available shall not be eligible to participate in a program under this part for the fiscal year for which the determination is made and for the two succeeding fiscal years, unless, within 30 days of receiving notification from the Secretary of the loss of eligibility under this paragraph, the institution appeals the loss of its eligibility to the Secretary. The Secretary shall issue a decision on any such appeal within 45 days after its submission. Such decision may permit the institution to continue to participate in a program under this part if— "(i) the institution demonstrates to the satisfaction of the Secretary that the Secretary's calculation of its cohort default rate is not accurate, and that recalculation would reduce its cohort default rate for any of the three fiscal years below the threshold percentage specified in subparagraph (B); or "(ii) there are, in the judgment of the Secretary, exceptional mitigating circumstances that would make the application of this paragraph inequitable. During such appeal, the Secretary may permit the institution to continue to participate in a program under this part. "(B) For purposes of determinations under subparagraph (A), the threshold percentage is— "(i) 35 percent for fiscal year 1991 and 1992; and "(ii) 30 percent for any succeeding fiscal year. "(C) Until July 1, 1994, this paragraph shall not apply to any institution that is— "(i) a part B institution within the meaning of section 322(2) of this Act; "(ii) a tribally controlled community college within the meaning of section 2(a)(4) of the Tribally Controlled Community College Assistance Act of 1978; or "(iii) a Navajo Community College under the Navajo Community College Act.". (b) REFUSAL TO PROVIDE STATEMENT TO LENDER. —Section 428(a)(2)(F) of such Act (20 U.S.C 1078(a)(2)(F)) is amended by inserting before the period at the end thereof the following: ", except that, in individual cases where the institution determines that the portion of the student's expenses to be covered by the loan can be met more appropriately, either by the institution or directly by the student, from other sources, the institution may refuse to provide such statement or may reduce the determination of need contained in such statement". (c) EXTENSION OF DEFAULT RATE LIMITATIONS ON SLS LOANS. — Section 2003(a)(3) of the Omnibus Budget Reconciliation Act of 1989 20 USC 1078-1 is amended— ^°^- (1) by inserting "paragraph (1) of after "amendments made by"; and (2) by striking out "October 1, 1991" and inserting "October 1, 1996". (d) EFFECTIVE DATE.—The amendments made by this section shall 20 USC 1085 be effective July 1, 1991, except that the amendment made by "°*®- subsection (b) shall be effective upon enactment. SEC. 3005. ABILITY TO BENEFIT. (a) IN GENERAL.— Section 484(d) of the Higher Education Act of 1965 (20 U.S.C. 1091(d)) is amended to read as follows: