PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 515 "(II) the interest rate shall not exceed 10 percent.". (b) EXCESS INTEREST PAYMENTS.— Section 427A(e) of the Act is 20 USC i077a. amended— (1) in paragraph (1)— (A) by striking "IN GENERAL" and inserting "EXCESS INTEREST ON 10 PERCENT LOANS"; (B) by striking "paragraph (3)" and inserting "paragraph (5)"; (2) in paragraph (2), by inserting "FOR 10 PERCENT LOANS" after "(2) AMOUNT OF ADJUSTMENT"; (3) by striking paragraph (5); (4) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively; (5) by inserting the following new paragraphs after paragraph (2): "(3) EXCESS INTEREST ON LOANS AFTER 1992 AMENDMENTS, TO BORROWERS WITH OUTSTANDING BALANCES.— If, with respect to a loan made on or after the date of enactment of the Higher Education Amendments of 1992 to a borrower, who on the date of entering into the note or other written evidence of the loan, has an outstanding balance of principal or interest on any other loan made, insured, or guaranteed under this part, the sum of the average of the bond equivalent rates of 91-day Treasury bills auctioned for that quarter and 3.1 percent is less than the applicable interest rate, then an adjustment shall be made— "(A) by calculating excess interest in the amount computed under paragraph (4) of this subsection; and "(B)(i) during any period in which a student is eligible to have interest payments paid on his or her behalf by the Government pursuant to section 428(a), by crediting the excess interest to the Government; or "(ii) during any other period, by crediting such excess interest to the reduction of principal to the extent provided in paragraph (5) of this subsection. "(4) AMOUNT OF ADJUSTMENT.—The amount of any adjustment of interest on a loan to be made under this subsection for any quarter shall be equal to— "(A) the applicable interest rate minus the sum of (i) the average of the bond equivalent rates of 91-day Treasury bills auctioned for such calendar quarter, and (ii) 3.1 percent; multiplied by "(B) the outstanding principal balance of the loan (not including unearned interest added to principal) at the end of such calendar quarter; divided by "(C) four."; and (6) in paragraph (5), as redesignated— (A) by striking "or by reducing the number of payments" and inserting "by reducing the number of payments"; and (B) by sti^dng the period at the end and inserting ", or by reducing the amount of the final payment of the loan. Nothing in this paragraph shall be construed to require the lender to make additional disclosures pursuant to section 433(b).". (c) INTEREST RATE FOR NEW BORROWERS.— Section 427A of the Act is further amended—
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