105 STAT. 50 PUBLIC LAW 102-16—MAR. 22, 1991 SEC. 5. REPEAL OF CERTAIN REPORTING REQUIREMENTS. (a) IN GENERAL.— Section 1642 and paragraph (3) of section 1798(e) of title 38, United States Code, are repealed. (b) CLERICAL AMENDMENT.— The table of sections for chapter 32 of such title is amended by striking out the item for section 1642. SEC. 6. PROVISION FOR CERTAIN INDIVIDUALS TO ELIMINATE AN OVER- PAYMENT BY PERFORMING WORK-STUDY SERVICES. (a) IN GENERAL.— Section 1685 of title 38, United States Code, is amended by adding at the end the following new subsection: "(e)(1) Subject to paragraph (2) of this subsection, the Secretary may, notwithstanding any other provision of law, enter into an agreement with an individual under this section, or a modification of such an agreement, whereby the individual agrees to perform services of the kind described in clauses (A) through (E) of subsection (a)(l) of this section and agrees that the Secretary shall, in lieu of paying the work-study allowance payable for such services, as provided in subsection (a) of this section, deduct the amount of the allowance from the amount which the individual has been determined to be indebted to the United States by virtue of such individual's participation in a benefits program under this chapter, chapter 30, 31, 32, 35, or 36 (other than an education loan under subchapter III) of this title, or chapter 106 of title 10 (other than an indebtedness arising from a refund penalty imposed under section 2135 of such title). "(2)(A) Subject to subparagraph (B) of this paragraph, the provisions of this section (other than those provisions which are determined by the Secretary to be inapplicable to an agreement under this subsection) shall apply to any agreement authorized under paragraph (1) of this subsection. "(B) For the purposes of this subsection, the Secretary may— "(i) waive, in whole or in part, the limitations in subsection (a) of this section concerning the number of hours and periods during which services can be performed by the individual and the provisions of subsection (b) of this section requiring the individual's pursuit of a program of rehabilitation, education, or training; "(ii) in accordance with such terms and conditions as may be specified in the agreement under this subsection, waive or defer charging interest and administrative costs pursuant to section 3115 of this title on the indebtedness to be satisfied by performance of the agreement; and "(iii) notwithstanding the indebtedness offset provisions of section 3114 of this title, waive or defer until the termination of an agreement under this subsection the deduction of all or giny portion of the amount of indebtedness covered by the agreement from future payments to the individual as described in section 3114 of this title. "(3)(A) Subject to the provisions of subparagraphs (B) and (C) of this paragraph, an agreement authorized under this subsection shall terminate in accordance with the provisions of this section and the terms and conditions of the agreement which are consistent with this subsection. "(B) In no event shall an agreement under this subsection continue in force after the total amount of the individual's indebtedness described in paragraph (1) of this subsection has been recouped, waived, or otherwise liquidated.