106 STAT. 520 PUBLIC LAW 102-325-JULY 23, 1992
- (1) IN GENERAL. —For purposes of this part and part E,
a borrower shall be considered to have an economic hardship if— "(A) such borrower is working full-time and is earning an amount which does not exceed the greater of— "(i) the minimum wage rate described in section 6 of the Fair Labor Standards Act of 1938; or "(ii) an amount equal to 100 percent of the poverty line for a family of 2 as determined in accordance with section 673(2) of the Community Service Block Grant Act; or "(B) such borrower meets such other criteria as are established by the Secretary by regulation in accordance with paragraph (2). " (2) CONSIDERATIONS.— In establishing criteria for purposes of paragraph (1)(B), the Secretary shall consider the borrower's income and debt-to-income ratio as primary factors.". 20 USC 1078. (f) DISBURSEMENT. — Section 428(b)(l)(N) of the Act is amended by striking "except in the case of attendance at an institution outside the United States, the funds shall be delivered directly to the student;" and inserting "except in the case of students who are studying outside the United States in a program of study abroad that is approved for credit by the home institution at which the student is enrolled, the funds shall, at the request of the borrower, be delivered directly to the student and the checks may be endorsed, and fund transfers authorized, pursuant to an authorized power-of-attomey;". (g) CONSEQUENCES OF LS&T ACTIONS. —Section 428(b)(l)(T) is amended to read as follows: "(T) authorizes (i) the limitation of the total number of loans or volume of loans, made under this part to students attending a particular eligible institution during any academic year; and (ii) the limitation, suspension, or termination of the eligibility of an eligible institution if—• "(I) such institution is ineligible for the emergency action, limitation, suspension, or termination of eligible institutions under regulations issued by the Secretary or is ineligible pursuant to criteria, rules, or regulations issued under the student loan insurance program which are substcmtially the same as regulations with respect to emergency action, limitation, suspension, or termination of such eligibility issued by the Secretary; "(II) there is a State constitutional prohibition affecting the eligibility of such an institution; "(III) such institution fails to make timely refunds to students as required by regulations issued by the Secretary or has not satisfied within 30 days of issuance a nnal judgment obtained by a student seeking such a refund; "(IV) such institution or an owner, director, or officer of such institution is found guilty in any criminal, civil, or administrative proceeding, or such institution or an owner, director, or officer of such institution is found liable in any civil or administrative proceeding, regarding the obtaining, maintenance, or disbursement
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